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Simple English definitions for legal terms

Stepped-up basis

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A quick definition of Stepped-up basis:

Stepped-up basis is a tax rule that looks at the value of assets when someone inherits them, instead of when the previous owner bought them. This helps reduce the amount of taxes someone has to pay when they sell the inherited assets. For example, if someone inherits stocks that are worth more than when they were bought, they only have to pay taxes on the increase in value since they inherited them, not since they were originally bought. This can save a lot of money in taxes.

A more thorough explanation:

Stepped-up basis is a tax policy that determines the value of inherited assets based on their market value at the time of inheritance, rather than the value when the previous owner purchased them. This policy can significantly reduce the amount of capital gains taxes owed by the inheritor when they sell the assets.

For example, let's say John bought 100 shares of ABC Co. for $10 each. When he passed away, Sarah inherited the shares, which were worth $20 each at the time. Five years later, Sarah decides to sell the shares, and they are now worth $30 each. Under the stepped-up basis policy, Sarah would only have to pay capital gains taxes on the $10 increase in value since she inherited the shares ($30 - $20 = $10). Without the stepped-up basis policy, Sarah would have to pay capital gains taxes on the $20 increase in value since John purchased the shares ($30 - $10 = $20).

Overall, the stepped-up basis policy can be beneficial for those who inherit assets, as it can reduce the amount of taxes owed when they sell those assets.

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THATS SO FUNNY
i cant i would go crazy
JumpySubsequentDolphin
20:50
i need to know who decided to do that.
JumpySubsequentDolphin
20:50
omg im on a plane weeeee
the devil
youre on a plane??? LSD made the mile high club??
20:50
yo splitterus are you in school already
20:50
it says ur c/o 2027
JumpySubsequentDolphin
20:51
@SplitterusClitterus: HAHAH yes
ur user is hilarioussss and no i just graduated this may and am now applying ---also im out of messages so ill take a lil
20:52
roger dat. see u in heck
im back, r u applying this cycle too
JumpySubsequentDolphin
21:32
this child fell asleep on me
JumpySubsequentDolphin
21:32
im so uncomfortable
just push him off the entire seat
JumpySubsequentDolphin
21:34
LMAOOOO
JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
22:12
@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
AHHAHAHAHAHAHHAHAHAHAHAHAH
@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
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