Dec 23, 2019 · Facts: Client transfers commercial real estate, bare land, with FMV of $500,000 and cost basis of $100,000 into an irrevocable trust. The irrevocable trust has a non related person as trustee. Beneficiaries are clients children. Client files a gift tax return showing FMV at $500,000. Client has o New IRS Form 8971 Rules To Report Beneficiary Cost Basis Mar 30, 2016 · Executive Summary. When a beneficiary inherits property from a decedent, the asset receives a step-up in basis to its value on the date of death – which is both a tax perk for inheritors, and a form of tax simplification (as beneficiaries otherwise may not know what the decedent’s original cost basis was anyway).