Robert and Diane, husband and wife, live in Pennsylvania, a common law state.They purchased land as joint tenants in 2015 for $300,000.In 2019, Diane dies and bequeaths her share of the land to Robert.The land has a fair market value of $450,000.What is Robert's adjusted basis for the land?

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In a joint tenancy, both parties have an equal ownership interest in the property. When one party dies, the surviving joint tenant receives a step-up in basis for the portion of the property they inherit. In this case, Diane owned 50% of the property at the time of her death, so Robert receives a step-up in basis for that portion of the property. The step-up in basis is based on the fair market value at the time of Diane's death, which was $450,000. Therefore, Robert's adjusted basis for the land is $300,000 (his original share) + $150,000 (Diane's share with stepped-up basis) = $450,000.

Robert and Diane, Husband and Wife, Live in Pennsylvania, a Common