Basis of Business Assets in an Estate

[tonia2021]

When business assets are sold on an estate tax return (1041), what is the basis? Does the estate get a step-up in basis? Or does the basis for the deceased taxpayer flow through to the estate?

[Burke]

The estate gets a stepped-up basis if the assets were owned 100% by the decedent at the time of death. If you are referring to depreciation, you can disregard any previously taken. The estate's basis is its FMV.