Question on Stepped up Basis

[Aviator]

I have a question which is probably quite simple to answer for most of the folks on this board, but I'm just a bit stymied at this moment.

Here is the scenario. Spouse passes away in year 2003. In year 2004 surviving spouse sells their main home. All requirement specified in Section 121 regarding ownership, use, etc., have been met. My recollection is that the surviving spouse acquires one half the stepped up basis established by the deceased spouse on date of death. Is this correct? I have looked at Section 1014 and it seems to allude to this fact but perhaps there is a better reference source that I should review.

(I know, I know, I shouldn't be wasting other people's time on such a basic question, but I'm just drawing a blank on this one.)

I would sure appreciate any help anyone can offer (to include cite, please.)

Thank you in advance.

Aviator

[Mark Goldberg]

Yes

Yes, basis is 1/2 of FMV on date of death plus 1/2 cost plus improvements.

[jainen]

Usually true

Usually true, but it depends on how the property was titled. Joint tenant gets 50% stepup. Community property gets 100%. Separate property and tenants in common get whatever percentage was held.

[Aviator]

Question on Stepped up Basis

Thank you both, jainen and Mark for your responses. You confirmed what I thought was correct and needed reassurances.

Aviator