Section 1014 of the Internal Revenue Code will generally give a surviving joint tenant a step up in basis as to the portion of the jointly held property that was included in the decedent’s estate. Married couples in community property states get a step in basis on the whole value of the property. Joint tenants only get a step up on the half of the property that they inherit, not on the half that they own already.
Most states, including Connecticut, utilize the common law property system. Under this system, property acquired by a married person during marriage is the property of that person separately, unless the person agrees with his or her spouse to hold the property jointly. On property that you held jointly you would get a stepped up basis on your spouses share of the joint property.
Section 1014 of the Internal Revenue Code will generally give a surviving joint tenant a step up in basis as to the portion of the jointly held property that was included in the decedent’s estate. Married couples in community property states get a step in basis on the whole value of the property. Joint tenants only get a step up on the half of the property that they inherit, not on the half that they own already.
Most states, including Connecticut, utilize the common law property system. Under this system, property acquired by a married person during marriage is the property of that person separately, unless the person agrees with his or her spouse to hold the property jointly. On property that you held jointly you would get a stepped up basis on your spouses share of the joint property.