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

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 2013, Tony predeceases Jude when the realty is worth $2,000,000. Tony's heirs have an income tax basis in the property of:

A) $0.
B) $250,000.
C) $1,000,000.
D) $1,250,000.
E) $2,250,000.