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My client' spouse passed in 2017 and she now the had sole ownership of principal residence. She sold it in 2018 for as significant book profit. What cost basis ?

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In a community property state, she will receive a stepped-up basis for her share and her deceased spouse's share. So her cost basis will be the FMV as of his DOD. Depending on what kind of trust it is could create a different answer.  Grantor trust? Testamentary Trust? Revocable Trust? Irrevocable Trust?

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community property state?
How was title held?
You can edit your question to get rid of the extra words, as that might help.

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Community property state, In a trust
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Level 8

In a community property state, she will receive a stepped-up basis for her share and her deceased spouse's share. So her cost basis will be the FMV as of his DOD. Depending on what kind of trust it is could create a different answer.  Grantor trust? Testamentary Trust? Revocable Trust? Irrevocable Trust?

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Essentially, the surviving spouse will receive a stepped-up basis for the share owned by the deceased spouse.

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Still an AllStar
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