Capital gains step-up tax savings

Compute the federal capital gains tax SAVED via the step-up in basis at death — comparing inherited-and-sold vs gifted-during-life on appreciated property.

Current asset value

Decedent's original basis

LTCG rate %

NIIT rate %

State capital gains rate %

Total tax saved by step-up

Show the work

Federal tax saved$120,000
NIIT saved$22,800
State tax saved$54,000