PK,
(a) Start the year with H /S owning 2 shares of the house -- each valued at $100 == $200
( b) when H dies, under CA laws H's Estate and that of the W gets step to FMV ---- the third share does not fall into the decedent's marital estate and therfore remains at original basis.
You said in (b), W gets step to FMV. Take Mike's example, what would be the value that W gets step to?
Thanks
