The Step-Up In Basis

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00:00 The Step-Up in Basis
0:44 The Step-Up Rule Often Surprises People
1:10 The Three Parts to this Livesteam
2:00 Some People Call the Step-Up a Loophole
2:26 What is the Step Up in Basis
3:30 Capital Gains Tax Applies Only When Assets are Sold
4:07 Carry-Over Basis
4:54 Gift vs Inheritance Matters
6:01 Community Property States
10:28 Step-Up Rule Does Not Apply to Traditional IRAs or 401(k)s
12:08 Example - Stock Bought For $10,000 Now Worth $2 Million
22:30 Planning Strategies
22:54 Die With Asset in Estate
23:49 Old Way of Estate Planning DId Not Allow Double Step Up
25:05 Credit Shelter Trust Not Needed as Much Today
29:50 The Dilemma Married People Have
33:35 Surviving Spouse Perhaps Should Maximize Distributions From First Spouse to Die's Trust
34:54 Special Rules Regarding Gifting the Home
38:10 Transferring Appreciated Assets To Terminal Person
39:00 Q&A

[@anhnguyenghet9093]

Great video. Thank you for educating me on this topic.

[@robertjones2820]

I learned something today, thank you.

[@charliethewanderer6872]

When the person received the Real Estate from a Trust, how does IRS knows and accepts the step -up basis amount ?

[@jayaghoorah9515]

Love your blogs. Thank you.

[@bcase5328]

I think the cartoon had Pebbles and BamBam marrying. So, your examples still work.

[@rockinthedadlife2244]

Bedrock was next to Hollyrock which is obviously in Californirock.

[@catherinelemaster3883]

Paul-enjoy your videos! I jointly owned a home (with rights of survivorship) with my partner, who passed in 2022. Is there a step up in basis of the home?

[@rick_in_texas]

What about NUA in a 401k? I will get to put that into a regular brokerage account after I pay the cost basis when I choose to move it out. Will my heirs get a step up? Yes i am in a community property state.

[@jimfranks]

Hey Paul. Love the channel. I know everyone uses the example of an “appreciated” asset, but doesn’t it work both ways? If you elected to do a step up, the new basis is the value at death, which includes the value of an asset that has actually gone down in value. You have to step up/down all assets, as I understand. Let me know how wrong (or correct) I am. Thanks again for the vast info you provide.

[@kithall1]

When someone dies, who decides what the fair market value is on a piece of property to determine what the step up in basis will be?

[@user-ot2ze4iz9j]

What about the limit on amount you can gift to 1 person/year without tax implications????

[@kellyfennell4559]

What if your children hold it until death is it locked at the step up basis or can it be stepped up again

[@paragshah5444]

General Question about living trusts .Can married couples who fund their home into a living trust, can still get the married couple capital gains exemption of $400,000 if they sell their home thats now in a living trust ?

[@duanespies9830]

Where does life insurance go?

[@murkri8723]

"My favorite uncle Sam" Hahahahahahaha... Most hated uncle is more like it :-)

[@brightonmusic]

Do beneficiaries of Ibonds get a step up basis?

[@kithall1]

Who decides what the mail market value of a property was at the time of death? Help!

[@kithall1]

Who decides what the fair market value of real estate was at the time of death .help!

[@iconoclast6994]

Like the info. But it takes way too long you to actually get to the point. For better and worse, many like me don’t have the time to wait around…

[@trsdarrin]

I have a quit claim deed that transfers, the property from my mother, to myself upon her death how will I be taxed once she passes and I record the deed. I am in Michigan

[@michaela1655]

Shinners and Cook are in Saginaw, Michigan. They are real experts on such topics related to estate law in MI.

[@beckymuska2620]

Check out a ladybird deed , no probate and no inheritance tax .

[@michaela1655]

Ladybird deeds are allowed in Michigan but there are only about 5 states that allow the use of this type of deed.@@beckymuska2620

[@newwine1887]

I got to 58 min. pre recorded and there was 17 ads!! Too distracting and annoying.

[@rockinthedadlife2244]

Barney and Betty died so Fred and Wilma adopted Bam Bam.