@Mike9241
https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/my-wife-died-in-2022-...
There were a lot of conversation in above question. But my question is a little different. (1) 3 people on the deed. Parents and child, not husband and wife, (2) Property in community property states. I like to see how 3 new assets added to the property A in Husband/Wife question scenario to apply to my case.
Based on your explanation:
At Husband(H) passed, FMV is $600, so H's share is $200.
Asset #1 H's asset $100 and his prior depreciation discard.
Asset #2 W's share $200 (original 100 + 1/2 H share 100)
Asset #3 C's share continues $200.
At W passed, the FMV is $800. Child has 3 assets:
Asset #1) W share $200 and her prior depreciation diminished.
Asset #2) $400(800/2) from W and her prior depreciation continue.
Asset #3) C's previously owned $200 and her prior depreciation continue.
So far so good?
However in Husband/Wife case, @Anonymous_ stated In community property states, property held as such (husband and wife) receives a full (100%) step up in basis, not 50%. In common law states, the step up in basis is 50%. And PK in my case stated (a) Start the year with H /S owning 2 shares of the house -- each valued at $100 == $200, this is no difference from 1/3 for each party, however (b) is totally different. ( b) when H dies, under CA laws H's Estate and that of the W gets step to FMV (not quite understand how much W gets in my scenario)---- the third share does not fall into the decedent's marital estate and therefore remains at original basis.
Based on @pk and @tagteam, will assets new value be changed?
At H passed, FMV= $600. 3 assets will be:
Asset #1) H share, 1/3 of the original tax basis and his prior depreciation discard.
Asset #2) W share gets 100% step up $600 and her previous depreciation continue.
Asset #3) C share original tax basis and previous depreciation stay the same
At W passed, FMV=$800, 3 new assets are:
Asset #1) W share $600 and prior depreciation discard
Asset #2) C gets 100% FMV $800 due to joint tenants, and depreciation starts $0. Is this correct??
Asset #3) C's original $100 and prior depreciation
