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Will I Receive a Step-Up in Basis for Gifted Property?

Updated: Apr 15, 2019

In most cases, there is no step-up in basis when property is gifted. But there are a few exceptions and those exceptions can be difficult to remember. This flowchart addresses some of the most common issues that arise for an individual trying to understand how their cost basis is impacted as a result of property they received as a gift. Some items to consider are:

  • Double Basis Rules

  • Impact if gift tax was paid by the donor

  • Situations where cost basis carries over

  • Situations where there is a partial step-up in basis

  • Situations where no gain or loss is recognized

Updated for 2019


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