Fred and Pearl always have lived in a community property state. At the time of Fred's prior death in 2013, they held stock that cost them $600,000 but was valued as follows.
Date of Death Six Months Later
$5,300,000 $5,200,000
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 of § 2032?
b. Does not elect the alternate valuation date of § 2032?

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The Answer of Fred and Pearl always have lived in a community property state. At the time of Fred's prior death in 2013, they held stock that cost them $600,000 but was valued as follows.
Date of Death Six Months Later
$5,300,000 $5,200,000
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 of § 2032?
b. Does not elect the alternate valuation date of § 2032?

Fred and Pearl Always Have Lived in a Community Property