@Opus 17 wrote:
......if one of the joint tenants paid zero for their share (i.e. it was a gift), then the entire property receives a stepped up basis.
Actually, that would be correct per Section 2040 (unless the property was held by the decedent and the decedent's spouse as TBE or JTWROS).
I virtually never see transactions (transfers), other than on this board, where parties other than two spouses end up holding title as JTWROS or TBE (and non-spouses cannot hold title as TBE). As a result, it's became a knee-jerk reaction to reach the conclusion outlined in earlier answers in this thread.
Regardless, the current status is far from optimal, particularly if there are other potential heirs who would effectively be disinherited by the manner in which title is being held.
