Inheriting property? Be aware of the basis consistency rules

If you’re in line to inherit property from a parent or other
loved one, it’s critical to understand the basis consistency rules. Current tax
law, passed in 2015, provides that the income tax basis of property received
from a deceased person can’t exceed the property’s fair market value as finally
determined for estate tax purposes. The 2015 law requires consistency between a
property’s basis reflected on an estate tax return and the basis used to
calculate gain when it’s sold by the person who inherits it. Also, estates are
required to furnish information about the value of such property to the IRS and
the person who inherits it. Contact us for more details.