Dear Liz: I own a house with my longtime boyfriend. If one of us dies, how does the capital gains step-up affect the other?

Answer: The deceased partner’s share of the home will get a new basis for tax purposes. The survivor’s share will not.

Tax basis helps determine how much of a capital gains tax bill you might face when you sell a home or any other asset that gained value over time. Your basis is generally what you paid for the home, plus qualifying improvements.

Inherited assets typically get a step-up in tax basis to their current market value, which means that no one has to pay taxes on the appreciation that occurred during the original owner’s lifetime.

If you were married and living in a community property state such as California, then the entire house could get stepped up

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