Level 2

Question

How and where do you enter the data for a stepped-up basis, when spouse dies and husband wants to used the steppe up basis for property ?

Forum|Forum|1 year ago
April 3, 2025
3 replies
29 views

The property was purchased in 2002 for $260,000.00. The wife passed away in 2021, and an appraisal of the property was requested on 06/24/2021. The property was appraised for $ 1,075,000.00. Where and how do we enter this data in the pro series so the husband doesn't pay taxes?

ProSeries Professional

sjrcpa

Level 15

"so the husband doesn't pay taxes? "

Huh?

If it is depreciable property, I enter the husband's share of the step up as anew property and depreciate it. I reduce the original basis of the property so it shows only the husband's share.

If it is the personal residence, you don't enter anywhere until it is sold.

The more I know the more I don’t know.

S

somtaxAuthor

Level 2

The property was sold in June 2024; it was a personal residence, which will help the husband not pay taxes on the capital gain from the house sale. Can we do it on a stepped-up basis?

sjrcpa

Level 15

Is this community property?

Or not?

The more I know the more I don’t know.

S

somtaxAuthor

Level 2

I forgot mentioned, the property was sold in June 2024 for $1,230,000.00

T

Terry53029

Intuit Community Champion

The surviving spouse receives a step-up in basis when the first spouse dies. However, the value of that adjustment depends on whether they live in a community property state. In a community property state, the surviving spouse receives a full step-up in basis. Meaning their basis becomes the fair market value of the asset at the time their spouse passed. In a common law state the surviving spouse gets a step up of half the FMV

Accountant-Man

Level 13

NON-COMMUNITY PROPERTY STATE: To answer your question, on the Adjusted Basis of Home Sold worksheet add the Step Up on the increases to basis section, line 7. Half of $1,015 million is $507,500. Subtract half of the original cost($130,000) and replace it with the $507,500.

Don't forget half of the improvements before Spouse's death can be added to the $507,500(TP's half) plus TP's half of original cost PLUS 100% OF IMPROVEMENTS AFTER DEATH.

** I'm still a champion... of the world! Even without The Lounge.

S

somtaxAuthor

Level 2

Thank you for your response. If this is a community state, will all amounts be entered in full? And will it be placed on the same line number?

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