DianeW777
Expert Alumni

Deductions & credits

Yes, the date of original purchase would be the acquired date for the home sale. Filing requirements are always based on taxable income and not such things as cost basis that would actually reduce it.  The IRS begins with what is received as income and the taxpayer has to show why it may  not be taxable.

 

Community property.

In community property states (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin), each spouse is usually considered to own half of the community property. When either spouse dies, the total fair market value of the community property becomes the basis of the entire property, including the part belonging to the surviving spouse. For this rule to apply, at least half the value of the community property interest must be includible in the decedent's gross estate, whether or not the estate must file a return.

 

@mattbkwon 

[Edited: 02/18/2025 | 8:31 AM PST]

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