topic When step up sales allow to my spouse passed date, $250k reduction will not be given ? I have difficulties enter the Step up price & how to calculate basis this case in Get your taxes done using TurboTax

When step up sales allow to my spouse passed date, $250k reduction will not be given ? I have difficulties enter the Step up price & how to calculate basis this case

zeishinkoku2020 — Wed, 11 Feb 2026 10:48:45 GMT

I am having difficulties what I should enter these information , step up home price, Basis, etc. in TurboTax question in the home sales category. I would appreciate your guidance.

Re: When step up sales allow to my spouse passed date, $250k reduction will not be given ? I have difficulties enter the Step up price & how to calculate basis this case

Mike9241 — Thu, 10 Oct 2024 06:14:16 GMT

Nine states have community property laws. These states are Arizona, California, Idaho, Louisiana, New Mexico, Nevada, Texas, Washington, and Wisconsin.

From an income tax perspective, community property has a significant tax advantage i.e. upon the death of the first spouse, the entire property (regardless of legal ownership) gets step-up in basis to the value on date of death. In separate property states, only the part of the property which was owned by the deceased spouse gets step-up in basis.

assuming you are the surviving spouse

in non-community property states you enter as cost/tax basis the fair value of the deceased spouse's interest on the date of death + your cost/tax basis for your share up to that date + any the cost/tax basis for improvements you as owner make after that date

in community property states you use the full fair value on the date of death + the cost of subsequent improvements you as owner made.

if you are using the worksheet to compute basis, the simplest way is to enter the computed amount as the purchase price. The IRS never sees this worksheet.

Re: When step up sales allow to my spouse passed date, $250k reduction will not be given ? I have difficulties enter the Step up price & how to calculate basis this case

zeishinkoku2020 — Thu, 10 Oct 2024 07:47:10 GMT

I appreciate your guidance. So I can enter the total amount of FMV + any Improvement.

After this entry, Doe the TurboTax determine if I am eligible for $250,000 Deduction or not?

Is there any place to enter the Expense on purchasing this home, also?

I would like your advice on TurboTax entry.

In the TurboTax Home sales > Adjusted cost basis Easy Guide > "Enter the description and amount of any other items that increased the cost of your home at ....."

For Example:

-Your received part or all of the home through an inheritance.

-Certain legal fees related to the property.

xxx

Description of Increase: For this question, Do I enter the words " Step Up Fair Market Value upon death Title Community Property with Right of Survivorship" ?

Amount: Do I enter the differences amount of FMV at the death of my spouse and our original purchase price here?

Thank you very much for your help.