Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

Stepped-up basis

Read a random definition: Severability clause

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.

stepparent adoption | Stipulate

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
Dkk
19:42
Maybe, didnt happen last time.
19:42
it was hard to not improve it. google search was terrible due to the ads and seo cheaters with buzz words and alt text
Dkk
19:42
SEO is big money
2016 pushed the conservative party into populism irreversibly
Dkk
19:43
Maybe, but if this is populism, then every election is populist.
19:43
@Dkk: yeah register 1 website and every swinging tom dick and harry calls/emails/texts to 'help with seo'. like bruh, if YOU found it, what i am doing is working
Dkk
19:43
Indeed!
19:48
wasp, i think people are hopeful for a gov who at least attempts to care about the common man
MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
LSD+ is ad-free, with DMs, discounts, case briefs & more.