Thanks... @ColeenD3 so this blurb from a tax law firm's example of a case is incorrect? I mean, I'm not suggesting it's impossible for them to be wrong...
- For non-married joint tenants, the rule looks at contribution. If the decedent paid for the property, then added his daughter's name and held the asset in joint tenancy upon his death, there is a basis adjustment to 100% of the property. If the daughter dies first, there is no basis adjustment.
There are so many caveats and exclusions, it's hard to understand them all. I guess my point is, the IRS publication 551 does say that if there is no consideration by the second JT in the property, which in fact does make it a gift, that in that case the basis gets adjusted to FMV, less any gift tax paid by the giver. I don't see any mention of a joint tenancy must happen at the time the property is purchased, but I will keep reading the Greek. I am open to further comment as to how I could be misinterpreting those very words.
I do plan on speaking with a tax lawyer but I appreciate the experts' opinions here in the community as well. I am going to pursue every possible avenue on this before I let it go. Thanks again!
