Stepped-Up Basis Calculator

Inheriting property 'steps up' your basis to fair market value at date of death — wiping out capital gain accumulated during the decedent's ownership. Massive tax break on appreciated real estate. This calculator sizes the benefit.

Decedent's original cost

FMV at death (stepped-up basis)

Eventual sale price

Capital gain tax rate %

Tax savings from step-up

$74,000

Basis step-up amount

$370,000

Gain on sale after step-up

$50,000

Gain without step-up (carryover basis)

$420,000

How the math works

$80K original cost, $450K at death, $500K sale: step-up = $370K. Without step-up, $420K gain × 20% = $84K tax. With step-up, only $50K gain × 20% = $10K tax. Saves $74K.

Major reason to let appreciated property pass at death vs gift during life. Document valuation carefully at death — establishes basis for all future heirs.

Editorial noteMaintained by EveryCalc - Reviewed June 2026

EveryCalc calculators are designed for fast, practical estimates with transparent inputs and no required account. We use plain formulas, visible assumptions, and related tools so visitors can check the result from more than one angle.

Results are informational only. For financial, tax, legal, medical, construction, or other high-impact decisions, verify the output against primary sources or a qualified professional.

Learn more about our review process on the EveryCalc methodology page.

How this calculator works

What this page estimates

This Stepped-Up Basis Calculator is built to give a quick, browser-based estimate for stepped-up basis. Inheriting property 'steps up' your basis to fair market value at date of death — wiping out capital gain accumulated during the decedent's ownership. Massive tax break on appreciated real estate. This calculator sizes the benefit. The inputs stay on the page during normal use, and the result should be treated as an estimate for planning, comparison, or education rather than professional advice.

Calculation approach

The calculator applies the standard relationship implied by the inputs, then formats the answer so it can be checked and reused. For finance tools, the most important step is using consistent units, rates, time periods, and assumptions before comparing the result with another calculator or outside quote.

Example workflow

For example, start with a realistic value you already know, change one input at a time, and watch how the answer moves. That makes it easier to tell whether the result is being driven by the main amount, the rate, the time period, or a unit conversion.

Practical checks

Use current, real-world numbers when the result affects money, health, tax, or legal decisions.
Run a low, base, and high case when the inputs are estimates.
Check the related calculators below when the next decision depends on a different assumption.

How to interpret the stepped-up basis result

Best use

Use the result as a planning number for comparing payments, rates, returns, tax reserves, or cash-flow choices before you request a quote or make a commitment.

Cross-check

Compare the answer with the contract, lender estimate, tax form, brokerage statement, payroll record, or invoice that will control the real-world outcome.

Watch for

Do not rely on a single optimistic rate, return, or fee assumption. Money pages work best when you run low, base, and high cases and keep professional advice separate from the estimate.

This page belongs to the Finance calculator library, so the answer should be read in the context of the decision you are modeling rather than as a universal rule.

Before relying on this stepped-up basis estimate

Most calculator mistakes come from the inputs, not the arithmetic. Use this short audit before you reuse the answer in a spreadsheet, quote, application, or important conversation.

Confirm source numbers

Match balances, rates, fees, taxes, income, and payment dates against the lender quote, payroll record, tax form, statement, invoice, or contract.

Separate cash flow from total cost

A lower monthly payment can still cost more over time if fees, interest, taxes, or a longer term are hidden in the structure.

Run conservative cases

Test at least one higher-cost or lower-return case before using the output for a purchase, refinance, investment, loan, or tax decision.

Rerun this page when the rate, price, term, fee, tax rule, income, expense, or expected holding period changes.

How to Use

Enter decedent's original cost, FMV at death, and eventual sale price.
See basis step-up value and tax savings.

Frequently Asked Questions

Do I need appraisal at death?

Yes. Get appraisal dated within 6 months of death to establish FMV as new basis. Cost $400-$700. Protects against IRS audit. Also: alternate valuation 6 months post-death available in some cases.

Community property vs joint tenants?

Community property (CA, WA, etc.): full step-up at death of one spouse. Joint tenants: half step-up (only decedent's portion). Huge difference — consult CPA before structuring.

What about gifts while alive?

Gifts during life retain donor's basis (carryover). NO step-up. Inheriting at death gets step-up. Wait until death to transfer appreciated property when possible.