transfer on death

[JMV48]

My uncle passed away July 2018, property was sold July 2019, he paid $55,000, was sold for $60,000.

In 2007 after his wife passed away he had a transfer on death affidavit made and named 6 nephews and nieces as beneficiaries, he had no children, I was the executor.  Is the cost basis, his purchase price $55,000, or the FMV on the date of death?

[Anonymous_ · Accepted solution]

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@JMV48 wrote:

Is the cost basis, his purchase price $55,000, or the FMV on the date of death?

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TOD accounts bypass probate but are included in the gross estate of the decedent and receive a stepped-up basis as a result (stepped-up to the FMV at the date of deeath.