In 1990,Jude,a resident of New York,purchases realty for $500,000 listing title as "Jude and Tony,joint tenants with right of survivorship." In 2012,Tony predeceases Jude when the realty is worth $2,000,000.Tony's heirs have an income tax basis in the property of:

Question

Quizplus · Accepted Answer

In a joint tenancy with right of survivorship, when one tenant dies, the surviving tenant(s) automatically inherit the deceased tenant's share. Therefore, Tony's heirs do not inherit any interest in the property, resulting in a $0 income tax basis for them.

In 1990,Jude,a Resident of New York,purchases Realty for $500,000 Listing