What is Step-Up in Basis? | SIE, SERIES7, SERIES65 Exam Prep

Step-up in basis is a tax provision that adjusts the cost basis of inherited assets to their fair market value (FMV) at the date of the decedent's death, effectively eliminating unrealized capital gains that accumulated during the decedent's lifetime. This allows heirs to sell inherited assets with little or no capital gains tax. 📚 Learn more about Step-Up in Basis and other key terms for your SIE, SERIES7, SERIES65 exam at Open Exam Prep. 🎯 This term appears on: SIE, SERIES7, SERIES65 🔗 Full glossary: https://www.open-exam-prep.com/glossary 🔗 Step-Up in Basis definition: https://www.open-exam-prep.com/glossary/step-up-in-basis 💡 Exam Tip: Step-up in basis = inherited assets get NEW BASIS equal to FMV at death. Eliminates unrealized gains. GIFTS use carryover basis (no step-up). IRAs/401(k)s do NOT get step-up. Community property states allow DOUBLE step-up for surviving spouse. --- #securities #examprep #financeexam #sie #series7 #series65