My understanding is that all property you inherit steps up in basis to FMV at the time of death (or the alternative valuation date, if the estate uses one). When you inherit and sell, the FMV is the basis to use when calculating gains or losses. if you inherited a PSA 10 Michael Jordan RC the day after one sold for over $700K your basis in the card is that auction price, and you could sell it at current market of about $200K and not only not pay income tax on the sale, you would have a loss carryover that would gobble up investment income for years to come.
How you sell can alter the outcome even more favorably; I will be addressing this in my column in the future. New posts go up Saturdays.
Last edited by Exhibitman; 01-21-2023 at 11:05 AM.
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