How are stocks held in joint account divided for stepped-up basis upon death of spouse?
Question:
Answer:
This question has been asked previously on the boards.
http://answers.yahoo.com/question/index?...
See IRS Publication 551:
Qualified Joint Interest
Include one-half of the value of a qualified joint interest in the decedent's gross estate. It does not matter how much each spouse contributed to the purchase price. Also, it does not matter which spouse dies first.
A qualified joint interest is any interest in property held by husband and wife as either of the following.
Tenants by the entirety.
Joint tenants with right of survivorship if husband and wife are the only joint tenants.
Basis. As the surviving spouse, your basis in property you owned with your spouse as a qualified joint interest is the cost of your half of the property with certain adjustments. Decrease the cost by any deductions allowed to you for depreciation and depletion. Increase the reduced cost by your basis in the half you inherited.
More Questions & Answers...