Carryover basis

{
  "id": "MLC-T-LAW-000875",
  "term": "Carryover basis",
  "field": "Law",
  "definition": "The tax basis of an asset in the hands of a recipient that is determined by reference to the transferor's basis, rather than the asset's fair market value at the time of transfer. This concept applies in situations such as gifts or certain corporate reorganizations, where the asset's original cost basis is preserved. The recipient effectively steps into the shoes of the transferor for tax purposes, inheriting the original basis.",
  "url": "https://mlchart.com/terminology/law/carryover-basis/"
}