I own rental property that I’m planning to leave to my son when I die. What’s his tax basis?

Currently the basis of inherited property is stepped up to the value on the date of the owner’s death (“stepped-up basis rule”). What the owner paid for it or any depreciation that may have been claimed on the property is disregarded. However, Congress could change this rule at any time. There have been proposals to adopt a full or partial carryover basis rule, which could mean that your son would step into your shoes and take over your basis (in whole or in part). Again, at present, the stepped-up basis rule applies.