lydia33 Posted February 11, 2009 Report Share Posted February 11, 2009 I have a client that her husband died 3 years ago. She did not own the farm party in question. She inherited the property when he died. Does she get a stepped up basis for the property? I have to check with her to make sure that she owned no part of the parcel. If she did would she still get a step up basis for his half? She has sold the property in 2008. Quote Link to comment Share on other sites More sharing options...
OldJack Posted February 11, 2009 Report Share Posted February 11, 2009 Assuming this was not in a community property state and that the farm was purchased before she married the husband, I would expect that she qualifies for fair-market-value basis as of the date of death. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted February 11, 2009 Report Share Posted February 11, 2009 Yes, she gets a step up to FMV at DOD, on whatever share she inherited. So if she had no ownership before his death, she gets FMV on all of it. Also, if it's a community property state, she gets FMV on all of it. If she was on the title before he died, as a joint owner, she gets step up on his half. Quote Link to comment Share on other sites More sharing options...
RoyDaleOne Posted February 12, 2009 Report Share Posted February 12, 2009 If the husband purchased the farm in 1977 or before, she also may get 100% stepped-up basis. Quote Link to comment Share on other sites More sharing options...
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