For the year 2010, "step-up" was replaced by "carry-over basis" rules. Carry-over basis means the basis of inherited property remains the same as it was for the deceased owner; which potentially increases the amount of gain upon the sale of the property. However, when property is inherited, the heir could choose to take a "step-up" in basis for $1.3 million of the property. For any amount inherited over $1.3 million, the heir's basis will be the smaller of the deceased owner's basis or the date-of-death-market value.