Top
image: easyproperty

How Is Cost Basis Calculated on an Inherited Asset?

July 25, 2018

An inheritance tax is a tax that may be imposed on a person who inherits the estate of a deceased person. The rate at which the inheritance is taxed depends on the value of the inheritance and the relationship of the beneficiary to the person who passed away.

Determining Cost Basis on an Inheritance

Generally, when property or other assets are inherited, the cost basis is usually equal to the fair market value of the property or asset at the time of the decedent’s death or time of actual transfer.

Read More on Investopedia