DEAR BOB: I know you have tackled this issue before, but I still don't understand. I'm sure many other readers are also interested. What does stepped-up basis mean for a house? My late husband and I owned our home as joint tenants with right of survivorship. He died in 2003. We bought our home in 1978 for about $200,000. Today, it is worth at least $650,000. What is my basis so I can see if I will owe any tax should I decide to sell? – Doris F. DEAR DORIS: The exact answer depends on the state where the property is located. If it is a non-community-property state, you receive a new stepped-up basis to market value on the 50 percent of the home you received from your late husband, plus your original 50 percent share. Purchase Bob Bruss reports online. To illustrate, if the house wa...
Get Inman via Facebook Messenger
Our top headlines delivered once a day.