Do you use the original date of purchase of the home or the date of death of the spouse?
You'll need to sign in or create an account to connect with an expert.
For a spouse in a community property state, the stepped-up basis is the Fair Market Value of the entire house on date of passing.
There is also an option for the exclusion to capital gain for a surviving spouse.
"Surviving spouses. If you are a surviving spouse who doesn't meet the 2-year ownership and residence requirements on your own, consider the following rule. If you haven’t remarried at the time of the sale, then you may include any time when your late spouse owned and lived in the home, even if without you, to meet the ownership and residence requirements.
Also, you may be able to increase your exclusion amount from $250,000 to $500,000. You may take the higher exclusion if you meet all of the following conditions.
You sell your home within 2 years of the death of your spouse;
You haven’t remarried at the time of the sale;
Neither you nor your late spouse took the exclusion on another home sold less than 2 years before the date of the current home sale; and
You meet the 2-year ownership and residence requirements (including your late spouse's times of ownership and residence, if applicable)."
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
mjls
Level 2
mjls
Level 2
poncho_mike
Level 4
MrMoose
Level 1
Tuser101
New Member
in Education