Fred and Pearl always have lived in a community property state. At the time of Fred's prior death, they held stock that cost them $600,000 but was valued as follows. $\begin{array}{ll}
\text { Date of Death } & \text { Six Months Later } \
\$ 5,300,000 & \$ 5,200,000
\end{array}$ Under Fred's will, his half of the stock passes to their daughter, Brandi. What income tax basis will Pearl and Brandi have in the stock, if Fred's estate:
a. Elects the alternate valuation date?
b. Does not elect the alternate valuation date?

Question

Fred and Pearl always have lived in a community property state. At the time of Fred's prior death, they held stock that cost them $600,000 but was valued as follows. $\begin{array}{ll}
\text { Date of Death } & \text { Six Months Later } \
\$ 5,300,000 & \$ 5,200,000
\end{array}$ Under Fred's will, his half of the stock passes to their daughter, Brandi. What income tax basis will Pearl and Brandi have in the stock, if Fred's estate: 
a. Elects the alternate valuation date?
b. Does not elect the alternate valuation date?

Quizplus · Accepted Answer

The Answer of Fred and Pearl always have lived in a community property state. At the time of Fred's prior death, they held stock that cost them $600,000 but was valued as follows. $\begin{array}{ll}
\text { Date of Death } & \text { Six Months Later } \
\$ 5,300,000 & \$ 5,200,000
\end{array}$ Under Fred's will, his half of the stock passes to their daughter, Brandi. What income tax basis will Pearl and Brandi have in the stock, if Fred's estate: 
a. Elects the alternate valuation date?
b. Does not elect the alternate valuation date?

Fred and Pearl Always Have Lived in a Community Property Date of Death Six Months Later $5,300,000$5,200,000\begin{array}{ll}\text { Date of Death } & \text { Six Months Later } \\\$ 5,300,000 & \$ 5,200,000\end{array} Date of Death $5,300,000​ Six Months Later $5,200,000​

Fred and Pearl Always Have Lived in a Community Property $\begin{array}{ll}\text { Date of Death } & \text { Six Months Later } \\\$ 5,300,000 & \$ 5,200,000\end{array}$