Definition · Tax
Step-Up in Basis at Death
Heirs generally receive a cost basis equal to fair market value at death, which can eliminate gains deferred through 1031 exchanges.
Nashional Investments · Updated October 2026
Educational definition only, not investment, tax or legal advice.
In practice
Tax strategy is usually about timing and structure: when income is recognized, where it is deducted and how gains are taxed. The term Step-Up in Basis at Death names one of the tools or rules we look at with your CPA when building a plan. The right answer depends on your income, your assets and your goals, so we model the options before you act.
Questions
Common questions.
What does the term Step-Up in Basis at Death mean?
Heirs generally receive a cost basis equal to fair market value at death, which can eliminate gains deferred through 1031 exchanges.
Why does Step-Up in Basis at Death matter for investors?
Tax strategy is usually about timing and structure: when income is recognized, where it is deducted and how gains are taxed. The term Step-Up in Basis at Death names one of the tools or rules we look at with your CPA when building a plan.
Related terms
Where it applies
See how this fits into a real plan on our Tax strategies page.
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