Quote:
Originally Posted by retired
Since the property is owned jointly, the surviving spouse gets a stepped up basis for only half of the value. He/she should consider living in it as their primary home long enough to get the $250,000 exclusion on the gain. If they plan on keeping it until death and passing it on to the kids, then they will get a full step up in basis.
|
As I previously noted, IF you are living in a COMMUNITY PROPERTY STATE, like NH, then it is likely the surviving spouse will get a FULL stepped up basis because the ownership in such a state is considered to be 100% BY EACH SPOUSE.
There may some nuances, such as when the property was purchased, etc. Therefore, as mentioned by many, if you want a definitive answer
FOR YOUR SITUATION, CONTACT AN ATTORNEY in the state where you live. If the property is owned in a different state than where you live, you might want to talk to an attorney in the state where the property is as well.