Discussion:Step-Up in Basis for passing through a deceased spouse's estate?

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Where do I go to calculate basis -- when determining the deceased mother's basis is it at her deceased husband's death, when she received a step-up in basis? I've stayed up too late reading §1014 and §2032 and now I'm confused. I greatly appreciate all replies. }} Where do I go to calculate basis -- when determining the deceased mother's basis is it at her deceased husband's death, when she received a step-up in basis? I've stayed up too late reading §1014 and §2032 and now I'm confused. I greatly appreciate all replies. }}
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 +{{ForumReplyPost|UserID=Riley2|Date=8 September 2009|Text=Not really sure that son really ever owned the property. Consequently, it would appear that the basis should be fmv on the date of mother-in-law's death.}}

Revision as of 03:56, 8 September 2009

Discussion Forum Index --> Advanced Tax Questions --> Step-Up in Basis for passing through a deceased spouse's estate?
Discussion Forum Index --> Tax Questions --> Step-Up in Basis for passing through a deceased spouse's estate?

Webskowskij (talk|edits) said:

8 September 2009
A mother of two son dies with a farm, which is liquidated. The assets are divided between the estates of her two sons, who both pre-deceased her.

My client is the widow of one of the sons. She has received the liquidated assets (app. $366,000)from her deceased husband's mother's estate (in Iowa) that passed through the estate of her deceased spouse (in Minnesota) first. I don't believe there are any community property issues involved here.

My question relates to a step-up in basis for the deceased mother's liquidated assets pass to the deceased son's estate. When they pass to the widow, does the real estate value, before liquidation, get a step-up in basis as of the deceased son's/deceased spouse's date of death, or since the sons both pre-deceased the mother, does the mother's basis in the real estate carry over to the deceased son's estate and then get on to the widow without any step-up in basis?

Where do I go to calculate basis -- when determining the deceased mother's basis is it at her deceased husband's death, when she received a step-up in basis? I've stayed up too late reading §1014 and §2032 and now I'm confused. I greatly appreciate all replies.

Riley2 (talk|edits) said:

8 September 2009
Not really sure that son really ever owned the property. Consequently, it would appear that the basis should be fmv on the date of mother-in-law's death.
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