In a community property state,jointly owned property left to the surviving spouse will have a basis after the estate is settled equal to
A)the decedent's basis before death.
B)the total fair market value of the entire property at the date of death (if the alternative valuation date was not elected).
C)half of the fair market value of the entire property at the date of death (if the alternative valuation date was not elected).
D)half of the basis just before death,plus half of the fair market value at the date of death (if the alternative valuation date was not elected).

Question

Quizplus · Accepted Answer

In a community property state, all property acquired during the marriage is considered community property and is owned equally by both spouses. Upon the death of one spouse, their share of the community property receives a step-up in basis to the fair market value at the date of death. Therefore, the correct answer is B, the total fair market value of the entire property at the date of death (if the alternative valuation date was not elected).

In a Community Property State,jointly Owned Property Left to the Surviving