[Crowbob]

Originally Posted by jwasbury

You don’t need to substantiate your basis along with your tax filing, only upon request if the IRS is examining you.

If an estate tax return was filed on behalf of the deceased, that would be my top choice for documentation to give to an auditor to substantiate the stepped up basis of inherited property. If the estate was not taxable and no return filed, then an appraisal should do.

I am an accountant.

Thank you.