Basis

[gman]

Taxpayer dies and wife gets stepped up basis(community property state)for entire property. Wife gives property to children and children decide to sell property.

what is childrens basis? Date of death of taxpayer?

[Bucky]

Wouldn't it be the wifes basis which would be date of death basis unless she had additional cost since death.

[BOB W]

Gift....

..... Tax return needs to be filed, unless the mother refused the inheritence and it passed on to the children through the will/probate????

[gman]

yes,

I would say gift returns should be filed, but would the basis for children be date of death of taxpayer.

[BOB W]

Basis...

.... would be the Mothers. Gifts are always the grantors basis. Yes it could be the DOD of the father but it has to be the Mother's bases> which may be the same if no additional contributions were made to basis.

[jainen]

can not be assumed

>>stepped up basis(community property state)for entire property<<

The fact that it's in a community property state is not relevant to the stepped-up basis. Property might receive a full, partial, or zero step-up in any of the fifty states. The question is whether it was community property, which can not be assumed.

[Davc]

>>stepped up basis(community property state)for entire property<<

The fact that it's in a community property state is not relevant to the stepped-up basis. Property might receive a full, partial, or zero step-up in any of the fifty states. The question is whether it was community property, which can not be assumed.

Agree vehemently!