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Understanding the “step-up in basis” when inheriting assets
May 21, 2025
Categories: Basis, Capital Gain, Capital Loss, inheritance, Stepped down, Stepped up
If you inherit assets after a loved one passes away, they often arrive with a valuable — but frequently misunderstood — tax benefit called the step-up in basis. Below is an overview of how the rule works and what planning might need to be done. What “basis” means First, let’s look at a couple definitions. Basis is generally what the owner paid for an asset, adjusted for improvements, depreciation, return of capital, etc. Capital gain (or loss) equals
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Planning for the future: 5 business succession options and their tax implications
April 5, 2025
Categories: Capital Gain, ESOP, Estate, GiftTax, Succession Options
When it’s time to consider your business’s future, succession planning can protect your legacy and successfully set up the next generation of leaders or owners. Whether you’re ready to retire, you wish to step back your involvement or you want a solid contingency plan should you unexpectedly be unable to run the business, exploring different succession strategies is key. Here are five options to consider, along with some of the tax implications. 1. Transfer directly to family