[WSBAPT] Brokerages & stepped up basis

[John J. Sullivan, Esq.]

Krista:

 

In my experience brokerages do not automatically review DOD values for purposes of stepping up basis. Most now have the ability to do so at the owner’s request with a few key strokes.

 

Basis is not reported to the IRS by the brokerage. I has to be known by the owner, so it can be used to measure gain upon sale, or depreciation if that is available (e.g., rental real property). 

 

John J. Sullivan

 

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Krista MacLaren
Sent: Monday, August 17, 2020 5:44 PM
To: wsba probate & trust <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Brokerages & stepped up basis

 

Hi All - 

 

I am wondering if brokerages have a default to step up the tax basis in an account that passes on the account holder’s death, and that stepped up basis is what is reported to the IRS, or does the PR always have to request that the tax basis be stepped up?  What is your practice to ensure the basis is stepped up?

 

Thank you,

 

Krista J. MacLaren
Attorney at Law
Northgate Executive Center II
9725 3rd Ave NE, Suite 600
Seattle WA 98115
(206) 523-6116
kjm.inc at icloud.com <mailto:kjm.inc at icloud.com> 

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