my husband passed away in May 2025. I sold our primary home in July 2025. We lived in the house for over 60 years and sold it for $1.1 million. What is my cost basis?

[NCperson · Accepted solution]

@cpicke sorry for your loss....

your cost basis is a) half of what you paid for the home originally plus b) half of all the improvements you made over the course of your ownership of the property plus c) 1/2 the market value of the property on the day your spouse passed in May 2025.

I assume you two owned the home jointly.

Further, since you sold the home within two years of your spouse's passing, the tax exclusion remains $500,000. 

[Mike9241 · Accepted solution]

However, if you live in a community property state your tax basis is the Full Fair Value on the date of his death +the cost of any subsequesnt improvmentst

[VolvoGirl]

So sorry for your loss.  My husband passed in 2023.  We were married 50 years.  What state are you in?  I'm in California and got a full step up in value on his date of death.  I thought I would only get a step up value for his half.  I haven't sold  yet.   And believe I get a full step up on my joint Mutual Funds (not just on half).  

[cpicke]

In Washington state so I think it's full step up value.