Asked by T

"Stepped-up basis" is:

The fair market value of gifted property on the date of the gift.


The donor's adjusted basis in gifted property on the date of the gift.


The fair market value of inherited property on the date of death.


The deceased taxpayer's adjusted basis in inherited property.

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Answered by GPT-5 mini AI
The fair market value of inherited property on the date of death.

Explanation: "Stepped‑up basis" refers to the basis of property inherited from a decedent being adjusted to its fair market value at the decedent's date of death (or alternate valuation date). Gifts generally carry over the donor's adjusted basis (carryover basis), not a step‑up.