Can I get a step-up basis on a mutual fund sale (we owned together in CA) when my husband is deceased?

[5spice]

hi - Am I allowed to get a step-up in basis on a mutual fund sale (we owned together in CA) since my husband is now deceased? 

If so, do I just document my cost-basis research and then use those numbers when filing? 

Is there something I should do about funds that we owned but that I haven't sold yet?

I have the same question for U.S. Savings Bonds.

Thank you

[Bsch4477 · Accepted solution]

Her half of the assets have a stepped up basis which is the value at her death.  For CA the entire asset basis is stepped up to that value.

[5spice]

When you say "for CA" do you mean CA state taxes are the total asset whereas for federal it's just the deceased portion, 50%?

Are mutual funds and savings bonds both eligible for the step-up.

[Bsch4477]

Yes, CA refers to California.  The step up refers to capital gains assets.  Bonds are generally an interest yielding asset.

[5spice]

found this on the irs site (pub 551) which is what bsch4477 says:
In community property states (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin), married individuals are each usually considered to own half the community property. When either spouse dies, the total value of the community property, even the part belonging to the surviving spouse, generally becomes the basis of the entire property. For this rule to apply, at least half the value of the community property interest must be includable in the decedent's gross estate, whether or not the estate must file a return.