Taxation on inheritance of assets for California/community property resident

Forum|Forum|3 years ago
September 28, 2022
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Suppose two spouses have a joint tenant (wros) brokerage account in California (community property state),

when one spouse passes away, will the surviving spouse receive a 100% or 50% cost basis adjustment

for the account's assets?

And if both spouses pass away, will the designated beneficiary receive any cost basis adjustment of the assets?

Thanks

BrenEA

Yes, in a community property states upon the passing of a spouse. Federal tax code section 1014(b)(6) provides that community property assets step up 100% in basis if not an inheritance or gift. Assuming you did not inherit the securities or receive them as a gift, they are community property.

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