Stepped-Up Basis
When assets are inherited at death, their tax basis resets to fair market value at the date of death, eliminating all built-in capital gains. Critical for succession planning: transferring a business at death can be more tax-efficient than gifting during life. Also relevant in asset sales where buyers get a stepped-up basis on purchased assets.
Where This Matters
Passing a business to the next generation — family dynamics, valuation for transfer, gift/estate tax strategy, and management transition.
Legal strategies to reduce business and personal tax burden — entity optimization, deferred compensation, retirement planning, California-specific tactics.
Everything business owners need to know about selling, exiting, or transitioning out of their company — from valuation to tax strategy to deal structure.
Related Terms
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