Carryover Basis

A method for determining the tax basis of an asset when it is transferred from one individual to another. Carryover basis is often used when property is given as a gift to someone else and is the method for determining the basis for future tax payments.

The carryover basis is commonly used in estate planning when transferring property to future heirs. It determines the value of the property at the beginning of the period and is used to determine the tax rate that must be paid on capital gains when the asset is sold.


Investment dictionary. . 2012.

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  • Carryover basis — occurs when a property transfer also results in a transfer of the transferor s basis in the property. The transferor s basis in the property carries over to the transferee. Tax law of United States of AmericaCarryover basis, also referred to as a …   Wikipedia

  • carryover basis — see basis 3 Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. carryover basis …   Law dictionary

  • basis — ba·sis / bā səs/ n pl ba·ses / ˌsēz/ 1: something (as a principle or reason) on which something else is established the court could not imagine any conceivable basis for the statute see also rational basis 2: a basic principle o …   Law dictionary

  • basis — Fundamental principle; groundwork; support; the foundation or groundwork of anything; that upon which anything may rest or the principal component parts of a thing. Accounting. Term used in accounting, especially in tax accounting, to describe… …   Black's law dictionary

  • basis — Fundamental principle; groundwork; support; the foundation or groundwork of anything; that upon which anything may rest or the principal component parts of a thing. Accounting. Term used in accounting, especially in tax accounting, to describe… …   Black's law dictionary

  • basis, carryover — n. The basis of property acquired from a decedent, valued at the basis of the property just before the decedent’s death. The Essential Law Dictionary. Sphinx Publishing, An imprint of Sourcebooks, Inc. Amy Hackney Blackwell. 2008 …   Law dictionary

  • Stepped-up basis — basis is the term used to describe the basis of property that a taxpayer receives from a decedent under the Internal Revenue Code § 1014(a). General rule Under IRC § 1014(a) the general rule applied to property a beneficiary receives from a… …   Wikipedia

  • cost basis — see basis 3 Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. cost basis n. The amount …   Law dictionary

  • tax basis — See: basis Category: Personal Finance & Retirement → Taxes Category: Real Estate & Rental Property → Selling a House Category: Wills, Trusts & Estates → Estates, Executors & Probate Court Nolo’s Plain English Law Dictionary. Gerald N. Hill,… …   Law dictionary

  • transferred basis — USA carryover basis, Also known as transferred basis. Property with a basis determined in whole or in part by reference to the basis in the hands of a donor, grantor or other transferor. For example, in a tax free reorganization that is… …   Law dictionary

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