Ed and Cheryl have been married for 27 years.They own land jointly with a basis of $300,000.Ed dies in 2014,when the fair market value of the land is $500,000.Under the joint ownership arrangement,the land passed to Cheryl.
a.If Ed and Cheryl reside in a community property state,what is Cheryl's basis in the land?
b.If Ed and Cheryl reside in a common law state,what is Cheryl's basis in the land?

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The Answer of Ed and Cheryl have been married for 27 years.They own land jointly with a basis of $300,000.Ed dies in 2014,when the fair market value of the land is $500,000.Under the joint ownership arrangement,the land passed to Cheryl.
a.If Ed and Cheryl reside in a community property state,what is Cheryl's basis in the land?
b.If Ed and Cheryl reside in a common law state,what is Cheryl's basis in the land?

Ed and Cheryl Have Been Married for 27 Years