Hypothetical tax question

jeffk · 01-26-2024, 01:29 PM

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.

phoenix · 01-26-2024, 02:53 PM

that's what my tax acct said also full step up and that's what i did on the estate tax return i filed.

longislander · 01-27-2024, 08:17 AM

Discuss "homestead property" and is the deed "joint ownership with rights of survivorship" with an attorney.

NH is not a community property state. Also confirm with an attorney.

jeffk · 01-28-2024, 05:04 AM

Quote:

Originally Posted by jeffk

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.

Mea culpa! I apologize for incorrect information. It seems that NH is NOT a community property state. When I originally checked, several seemingly reliable sources indicated it was. Now I am seeming more sources that say it is NOT!

CHECK WITH AN ATTORNEY!

longislander · 01-28-2024, 07:19 AM

And ask about possible confusion with an "equitable distribution" state, which NH is.

Further clarification with the attorney that "equitable distribution" is not the same as "equal distribution".

01-26-2024, 02:53 PM	#2
phoenix Senior Member Join Date: Apr 2004 Location: phoenix and moultonboro Posts: 1,554 Thanks: 61 Thanked 275 Times in 193 Posts	that's what my tax acct said also full step up and that's what i did on the estate tax return i filed. __________________ it's tough to make predictions specially about the future

Thread Tools
Show Printable Version Email this Page
Display Modes
Switch to Linear Mode Hybrid Mode Switch to Threaded Mode

01-27-2024, 08:17 AM	#3
longislander Senior Member Join Date: Jun 2007 Location: Moultonborough Posts: 546 Thanks: 49 Thanked 100 Times in 75 Posts	Discuss "homestead property" and is the deed "joint ownership with rights of survivorship" with an attorney. NH is not a community property state. Also confirm with an attorney.

01-28-2024, 07:19 AM	#5
longislander Senior Member Join Date: Jun 2007 Location: Moultonborough Posts: 546 Thanks: 49 Thanked 100 Times in 75 Posts	And ask about possible confusion with an "equitable distribution" state, which NH is. Further clarification with the attorney that "equitable distribution" is not the same as "equal distribution".