In this episode of TFE Talks, host Jordan Goewey welcomes Matt Edwards as they dig into income tax basis, explaining how it determines taxable gains when selling assets. During the conversation, Jordan and Matt explore how basis is established through purchase, gifting, or inheritance, with a particular focus on the critical "step-up in basis" rule that occurs when assets are inherited. The podcast provides valuable insights into estate planning strategies, such as strategically transferring assets to minimize tax liability and the potential benefits of holding appreciated assets until death. Key takeaways include understanding that basis is typically the original purchase price, assets can receive a new basis at death, why individuals should consult professionals to navigate complex tax implications when buying, selling, or transferring assets, and so much more.

Topics in this conversation include:

• Welcoming Matt and Previewing Today’s Episode (0:33)
• What is Income Tax Basis (1:17)
• Basis for Gifted Assets (2:14)
• Establishing Basis in New Businesses (3:38)
• Basis and Death/Inheritance (4:53)
• Benefits of Stepped-Up Basis (7:17)
• Strategies for Manufacturing Basis (9:09)
• Potential Tax Law Changes (11:10)
• Practical Advice for Asset Owners (13:01)
• Final Thoughts and Conclusion (15:08)

TFE Talks: Navigating Wealth, Business, and Legacy is the official podcast from Thomas, Fisher & Edwards, a premier estate planning and business advising law firm in Greenville, South Carolina. Each episode, our attorneys break down complex legal topics—covering estate planning, business strategy, and legacy building—into clear, actionable insights. Whether you're refining a plan with our team or preparing for the future, this podcast serves as your go-to resource for thoughtful, strategic planning. Tune in for guidance that helps you protect what matters most. Learn more at www.tfelawfirm.com.

The information provided in this podcast is for general informational purposes only and should not be considered legal advice. Listening to this podcast does not create an attorney-client relationship with Thomas, Fisher & Edwards or any of its attorneys. Laws and regulations vary, and legal matters are highly fact-specific. For personalized legal guidance, please consult with a qualified attorney.