Two brothers jointly owned (equally) a house. One of the brothers dies.Does the surviving brother receive stepped up basis when the house is sold?

[Coleen3 · Accepted solution]

Yes, on the inherited half.

When unmarried individuals own property in joint tenancy, each owner's share of the property—and therefore the part of the basis that's stepped up when that owner dies—is determined by contribution to the purchase price. Suppose you and your brother buy a cabin, with you contributing 20 percent of the cost and him paying the remaining 80 percent. If he dies first, the property passes to you as the joint owner. And 80 percent of the basis would be stepped up. Your basis would become your original investment, plus 80 percent of the cabin's value at the time of his death.

https://turbotax.intuit.com/tax-tips/rental-property/cost-basis-tracking-your-tax-basis/L4i1f9qB1