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." 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, their interest in the property automatically passes to the surviving tenant(s). Therefore, Tony's heirs have no interest or basis in the property.

In 1990, Jude, a Resident of New York, Purchases Realty