Date:   Tue, 03 Jul 2007
From:   Jan

Hi,

My mother owned 2,000 shares of stock. Before her death, she added my name to the account as joint tenant with rights of survivorship. All of the investments made in the account were hers, none were made by me. When I sell the shares, can I receive stepped-up basis as of her date of death?

Thank you,
Jan

Answer

Date:   07 Aug 2007

Hello Jan,

Yes. Property owned as joint tenants with an individual who isn’t the decedent’s spouse for which the decedent provided all of the consideration is fully includable in the decedent’s taxable estate, and therefore eligible for a 100% basis adjustment at death (or the alternate valuation date, if applicable).

Good luck!
Mike Gray

For answers to new questions, subscribe to our newsletter, Michael Gray, CPA's Tax & Business Insight by filling out the form below.

IRS Circular 230 Disclosure: As required by U.S. Treasury Regulations, you are hereby advised that any written tax advice contained on this website was not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed under the U.S. Internal Revenue Code.