topic Thanks! in Deductions & credits

Do I get a step up in basis upon husband's death for securities held in a joint tenants (JTWROS) brokerage account in California (community property state)?

staticvoid — Fri, 07 Jun 2019 22:10:46 GMT

While the account was Joint Tenants with Right of Survivorship, I never contributed to it; all funding for all stock/fund purchases was provided by my husband. Also note that I am in California, a community property state, if that makes any difference.

My main question is: do I get to recalculate the basis for the securities my husband purchased? If yes, does my basis change for the whole quantity of each security or only for half?

A side note, in case it makes any difference: After my husband's death, but before I had transferred the account to be solely in my name, I sold some of the assets. So when I received the 1099-B, it was in my husband's name (and reported against his SSN).

Do I report 100% of the capital gains on my individual return? Or do I report half on the return for the Estate of my husband?

Are the gains all long-term?

Do I have to nominee those capital gains (since they were reported against my husband's SSN)?

If the account qualifies as community property, at the de...

TomD8 — Fri, 07 Jun 2019 22:10:47 GMT

If the account qualifies as community property, at the death of one spouse you receive a step-up in basis for the entire amount. See this web reference for a good summary:

http://www.calcpa.org/public-resources/ask-a-cpa/home-property/tax-issues/do-i-get-a-step-up-on-my-s...

Since the account passed to you at your husband's death, the sale is reported only on your tax return. (If he died during 2015, you may still file your 2015 return as MFJ.)

Gain on the sale of inherited stock is always long term.

Thanks!

staticvoid — Fri, 07 Jun 2019 22:10:48 GMT

Thanks!