cost basis step up on death of joint owner
Owner passes away who had a joint stock account with spouse.
Am I correct in stating that the stepped up cost basis is the date of death value of the owner divided by two?
Example: bought stock at 100 per share. Now is 200. Owner passes and new step up for joint owner (spouse) would b 150 per share?
or
does she get the step up of 2oo per share?
Thank you,
Douglas
Permalink Submitted by Alan - IRA critic on Sat, 2019-08-31 22:49
Yes, 150 per share, but that is not the date of death basis/2. It is the total of the purchase cost plus the DOD value/2. This assumes a NON community property state.
Permalink Submitted by Bruce Steiner on Sat, 2019-08-31 23:17
What if they held the account as tenants in common? Would it still be $150 per share? Or would it be $100 a share for half of the shares and $200 a share for half of the shares, as if they each owned half of the shares?
Permalink Submitted by Alan - IRA critic on Sun, 2019-09-01 03:41
I believe that the TIC share would need to be determined, since this would not be qualified joint property. The decedent’s interest would get the basis adjustment.