Inherited stock from spouse, cost basis, state of residency Wife inherits stock from husband. Stock is in taxable brokerage account and is in husband's name only. Does wife get a step up in basis on the full amount, on half the amount, or not at all? Does it matter what state husband/wife reside in? The cost basis of the account that you're inheriting refers to how much the account owner paid for the investments in the account. The stepped-up cost basis is the cost basis adjusted to the fair market value available when you inherit the assets. You may benefit from a stepped-up cost basis if the fair market value This rule means you have to look carefully at the tax basis of property that may be part of a settlement. For example, $100,000 worth of stock with a basis of $90,000 is worth significantly more than $100,000 worth of stock with a $50,000 basis.