NUA (Net unrealized appreciation)
We live in Arizona. Arizona is a Community Property State.
Upon the death of one of the spouses in this community property state (AZ) , the cost basis for assets of both spouses are stepped up to the value on the date of death.
I utilized the NUA when I retired to transfer shares of company stock from my employer to a brokerage account. I received an IRS Form 1099-R showing the value of the NUA.
Question:
Upon the death of my spouse, can the cost basis for my stock beyond the value of the NUA increase to the value on her date of death?
A link to any supporting documentation would be appreciated.
