Chester dies in 2014 and gives his estate property to his so

Chester dies in 2014 and gives his estate property to his son Sam. Chester’s basis for his home was $150,000 with a fair market value of $600,000.

What would be Sam’s basis in this transfer? Is there a rule that is applied?

Sam’s basis in this transfer will be $600,000.

Yes, there is a rule that is applied. As per IRS the basis of a property that is inherited from a decedent is one of the following two:

(i) The fair market value (FMV) of the property on the date of the decedent’s death.

(ii) The fair market value (FMV) of the property on the alternative valuation date if the executor elects alternative valuation.