This is the calculation point between total gross income subject to reporting to the IRS and taxable income, which is the net income after all deductions and exemptions are subtracted. The importance of your Adjusted Gross Income (AGI) is that it is increasingly the starting point for figuring all deductions that are based on or limited by a percen [..]

Stepped-up basis is the value of property or investments at the date of death. For example, a stock cost $5,000 and grows to $75,000; if you sell it you have a $70,000 capital gain. If you die while still holding stock, your heir's cost basis is $75,000, so when they sell it they would have to pay tax on anything over $75,000, or get a loss on [..]

Stepped-up basis is the value of property or investments at the date of death. For example, a stock cost $5,000 and grows to $75,000; if you sell it you have a $70,000 capital gain. If you die while still holding stock, your heir's cost basis is $75,000, so when they sell it they would have to pay tax on anything over $75,000, or get a loss on [..]