Taxation on inheritance of assets for California/community property resident

[loufurut]

Suppose two spouses have a joint tenant (wros) brokerage account in California (community property state),

when one spouse passes away, will the surviving spouse receive a 100% or 50% cost basis adjustment

for the account's assets?

And if both spouses pass away, will the designated beneficiary receive any cost basis adjustment of the assets?

Thanks

[BrenEA]

Yes, in a community property states upon the passing of a spouse. Federal tax code section 1014(b)(6) provides that community property assets step up 100% in basis if not an inheritance or gift. Assuming you did not inherit the securities or receive them as a gift, they are community property.