Under the federal estate tax rules as they existed prior to January 1, 2010, the basis of property, whether real or personal, acquired from a decedent by reason of his or her death, was its fair market value on the date of death (or 6 months later, if the later if the alternate valuation date for all assets in the estate was selected). This was called the "step-up" in basis of inherited assets. However, as of January 1, 2010, this rule has changed...read more