I'm in California. My husband died in March 2023. Reading Pub 523 it sounds like my new house basis is now the full value? Or do I still add 1/2 value + 1/2 cost?
When either spouse dies, the total fair market value of the community property becomes the basis of the entire property, including the part belonging to the surviving spouse. For this rule to apply, at least half the value of the community property interest must be includible in the decedent's gross estate, whether or not the estate must file a return.
Bought in 1997
Say our cost + improvements are $300,000
Value on his death is $800,000