My client' spouse passed in 2017 and she now the had sole ownership of principal residence. She sold it in 2018 for as significant book profit. What cost basis ?

Forum|Forum|6 years ago
December 7, 2019
4 replies
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Best answer by poolcleaner

In a community property state, she will receive a stepped-up basis for her share and her deceased spouse's share. So her cost basis will be the FMV as of his DOD. Depending on what kind of trust it is could create a different answer. Grantor trust? Testamentary Trust? Revocable Trust? Irrevocable Trust?

George4Tacks

Level 15

community property state?
How was title held?
You can edit your question to get rid of the extra words, as that might help.

Answers are easy. Questions are hard!

C

CS57_2Author

Level 2

Community property state, In a trust

P

poolcleanerAnswer

Level 8

In a community property state, she will receive a stepped-up basis for her share and her deceased spouse's share. So her cost basis will be the FMV as of his DOD. Depending on what kind of trust it is could create a different answer. Grantor trust? Testamentary Trust? Revocable Trust? Irrevocable Trust?

itonewbie

Level 15

Essentially, the surviving spouse will receive a stepped-up basis for the share owned by the deceased spouse.

---------------------------------------------------------------------------------Still an AllStar

H

hspeck

Level 3

H & W had revocable trust. H died in 1999 and a dcedent trust was established in a communityy property state..W died in 2020. Can both the decedent trust and survivor trust use stepped up basis.

PhoebeRoberts

Intuit Community Champion

1) You should start your own post to ask a new question

2) Ain't no one going to opine on that without reading the trust documents and understanding the estate plan.

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