The Many Applications of IRC 1014

Author: Klaralee R. Charlton

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