Uploaded September 2026 | Updated September 2026, 1 week ago
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In this video, Toby Mathis explains how the step-up in basis can help real estate investors reduce or potentially eliminate capital gains taxes and depreciation recapture when passing appreciated rental property to their heirs.
Learn how step-up in basis works, why selling or gifting appreciated real estate can create a major tax bill, and how strategies like buy, borrow, die, 1031 exchanges, living trusts, LLCs, and community property planning can help preserve more of your wealth.
WATCH NEXT 👉 How To Start An LLC For Rental Properties (And Reduce Taxes!) youtube.com/watch?v=VpKdeUh_lTc
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Show Notes:
0:00 Intro
1:24 What Is a Step-Up in Basis?
3:10 How Step-Up in Basis Can Eliminate Capital Gains
4:16 What Happens to Depreciation Recapture?
6:48 Sell vs. Borrow Against Your Rental Property
7:29 The “Buy, Borrow, Die” Strategy Explained
8:27 Step-Up in Basis for Married Couples
9:40 Community Property Tax Benefits
11:38 Mistake #1: Gifting Appreciated Real Estate
13:42 Mistake #2: Using the Wrong Irrevocable Trust
16:31 Mistake #3: LLCs and Step-Up in Basis
17:46 Mistake #4: Estate Tax vs. Step-Up in Basis
20:13 How to Protect Your Step-Up in Basis
21:12 Should You Sell Your Appreciated Rental Property?
22:48 Outro
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TAX TUESDAY LIVE
Join us every other Tax Tuesday, where you can have your tax questions answered live by our experts entirely FREE. Register Now 👉 aba.link/tobytaxtues
~~~~
CONTACT US
Phone: 800.706.4741
Email: info@andersonadvisors.com
Fax: 702.664.0545
ABOUT TOBY MATHIS
Toby Mathis, Esq. is the best-selling author of Infinity Investing: How the Rich Get Richer And How You Can Do The Same. Toby is a tax attorney and founded Anderson Business Advisors, one of the most successful law, tax, and estate planning companies in the United States. Learn more at aba.link/tobyaba
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WARNING: I will NEVER ask you to contact me through YouTube comments, telegram, or WhatsApp. I have a checkmark next to my name, and my comment will be highlighted. Fake accounts do not have that. Please be aware of fake accounts trying to scam you using my name and picture.
The information provided in this video should not be construed or relied on as financial, investment, or legal advice for any specific fact or circumstance. Its content was prepared by Anderson Business Advisors with its main office at 3225 McLeod Drive Suite 100 Las Vegas, Nevada 89121. This video is designed for entertainment and information purposes only. Viewing this video does not create an attorney-client relationship with Anderson Business Advisors or any of its lawyers. You should not act or rely on any of the information contained herein without seeking professional legal advice.
#realestateinvesting #realestatetaxes #stepupinbasis #taxplanning
Would you like to learn more about protecting your assets and minimizing taxes? Schedule a free strategy session here: aba.link/00c6eb
In this video, Toby Mathis explains how the step-up in basis can help real estate investors reduce or potentially eliminate capital gains taxes and depreciation recapture when passing appreciated rental property to their heirs.
Learn how step-up in basis works, why selling or gifting appreciated real estate can create a major tax bill, and how strategies like buy, borrow, die, 1031 exchanges, living trusts, LLCs, and community property planning can help preserve more of your wealth.
WATCH NEXT 👉 How To Start An LLC For Rental Properties (And Reduce Taxes!) youtube.com/watch?v=VpKdeUh_lTc
Register for a FREE upcoming workshop today if you want to protect your business and personal assets. Save Your Seat: aba.link/60dm
🔔 Stay ahead of the curve. Subscribe for cutting-edge insights on real estate investing, business strategies, and more!
Show Notes:
0:00 Intro
1:24 What Is a Step-Up in Basis?
3:10 How Step-Up in Basis Can Eliminate Capital Gains
4:16 What Happens to Depreciation Recapture?
6:48 Sell vs. Borrow Against Your Rental Property
7:29 The “Buy, Borrow, Die” Strategy Explained
8:27 Step-Up in Basis for Married Couples
9:40 Community Property Tax Benefits
11:38 Mistake #1: Gifting Appreciated Real Estate
13:42 Mistake #2: Using the Wrong Irrevocable Trust
16:31 Mistake #3: LLCs and Step-Up in Basis
17:46 Mistake #4: Estate Tax vs. Step-Up in Basis
20:13 How to Protect Your Step-Up in Basis
21:12 Should You Sell Your Appreciated Rental Property?
22:48 Outro
---------------------------------------------------------------------------------------------------------
TAX TUESDAY LIVE
Join us every other Tax Tuesday, where you can have your tax questions answered live by our experts entirely FREE. Register Now 👉 aba.link/tobytaxtues
~~~~
CONTACT US
Phone: 800.706.4741
Email: info@andersonadvisors.com
Fax: 702.664.0545
ABOUT TOBY MATHIS
Toby Mathis, Esq. is the best-selling author of Infinity Investing: How the Rich Get Richer And How You Can Do The Same. Toby is a tax attorney and founded Anderson Business Advisors, one of the most successful law, tax, and estate planning companies in the United States. Learn more at aba.link/tobyaba
---------------------------------------------------------------------------------------------------------
WARNING: I will NEVER ask you to contact me through YouTube comments, telegram, or WhatsApp. I have a checkmark next to my name, and my comment will be highlighted. Fake accounts do not have that. Please be aware of fake accounts trying to scam you using my name and picture.
The information provided in this video should not be construed or relied on as financial, investment, or legal advice for any specific fact or circumstance. Its content was prepared by Anderson Business Advisors with its main office at 3225 McLeod Drive Suite 100 Las Vegas, Nevada 89121. This video is designed for entertainment and information purposes only. Viewing this video does not create an attorney-client relationship with Anderson Business Advisors or any of its lawyers. You should not act or rely on any of the information contained herein without seeking professional legal advice.
#realestateinvesting #realestatetaxes #stepupinbasis #taxplanning
