Survivor Is Entitled to Stepped-Up Basis Too
Kenneth R. Harney’s article (“Congress Seeks to End ‘Surviving Spouse’ Home Tax,” May 16) failed to mention that in community property states, like California, the surviving spouse gets a step up in basis for the deceased spouse’s interest and for his or her interest as well.
In the case Harney mentioned, Mary’s new basis would be $600,000. Mary could sell the house any time after Bob died and not pay any capital gains tax unless the sales price exceeded $850,000--her new basis of $600,000 plus the $250,000 exclusion.
BRAD PRESTON
Laguna Hills
Start your day right
Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week.
You may occasionally receive promotional content from the Los Angeles Times.
