Will there be a step-up in basis for this inheritance? Posted May 10, 2021 Q. My sister, her husband, and I own an S Corporation with 25%, 25% and 50% ownership, respectively. The S Corporation invests in rental properties. My brother-in-law passed away earlier this year, so does my sister get a step-up in basis for her husband’s portion? — Family business A. We’re sorry to hear about your brother-in-law, and it’s kind of you to try to help your sister. This is also referred to as a step-up in basis, said Catherine Romania, an estate planning attorney with Witman Stadtmauer in Florham Park.