@Carl wrote:
My condolences. If your wife was not listed as an owner on the deed, then nothing changes. Otherwise, you get a step-up in the entire basis of the property and depreciation on the new basis starts over from day 1 (the date of her passing) over the next 27.5 years.
Since this was in California (a community property state) the taxpayer gets a fully stepped up basis at 100% of FMV, But in a non-community property state, wouldn't the taxpayer only receive a stepped up basis on 50% of the property? (Asking for others who will read this but are not in a community property state.)
And in the same vein, since this is a community property state, wouldn't the spouse have owned half no matter how it was titled, so the taxpayer inherits the basis either way?
