Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2028 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
Internal Revenue Code (IRC) Section 1014, commonly known as the "step-up in basis" rule, is one of the most taxpayer-friendly provisions in the tax code. While its application is straightforward in many cases, practitioners often overlook opportunities to adjust the basis of assets that qualify under its provisions.
This course provides a comprehensive review of the fundamentals of IRC 1014 and explores lesser-known applications of basis adjustment rules. Participants will also examine estate planning strategies designed to maximize the tax benefits of stepped-up basis, ensuring clients take full advantage of this powerful tax-saving tool.
Publication Date: December 2025
Designed For
Attorneys, CPAs, and Enrolled Agents.
Topics Covered
- Deconstructing IRC 1014
- Establishing the Date of Death Value
- What is the Gross Estate
- Traditional Estate Planning AB Trusts & the Basis Adjustments
- Reporting Post Death Transactions
Learning Objectives
- Explain the application of IRC 1014 and its role in adjusting the cost basis of assets at a taxpayer’s death to minimize tax liabilities
- Identify the importance of structuring estate plans to effectively incorporate basis adjustment rules for optimal tax benefits
- Identify overlooked opportunities for basis adjustments that can enhance tax planning strategies
- Identify the potential tax savings that can be achieved through strategic basis adjustments at death
- Identify estate planning techniques that maximize the benefits of the step-up in basis for clients
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
Instructor
Klaralee R. Charlton
Klaralee Charlton is a Partner at 3i Law in Denver, Colorado. She practices fiduciary tax, estate administration, and business transactional law. As part of her practice, she guides clients through the process of administering a loved one’s estate including the collection, valuation, management and transfer of assets including financial accounts, real estate, and business interests with a focus on minimizing estate and income tax liability. Klaralee also works closely with trustees of ongoing trusts to ensure compliance and prepares clients’ fiduciary income tax returns annually.
Klaralee has written and lectured on topics including estate and gift tax, fiduciary income tax reporting and U.S. regulations governing the valuation of small family businesses. She is an active member of the Colorado Bar Association, Tax Section and Adjunct Profession at the University of Denver, Graduate Tax Program.
She earned her J.D. in 2011 from the University of Utah, S.J. Quinney College of Law, her LL.M. in Tax Law from the University of Denver in 2013, and her B.A. in political science in 2009 from Bryn Mawr College. She is admitted to practice in both Colorado and Montana.