Property Sale

[judys3]

I have a customer.  She and her husband bought property and house together. Since his passing in the will it stated his kids got 1/2 of the money when it was sold.  This was not their homestead.  

The taxpayer would get to use step up in basis upon the death of her spouse?

[IRonMaN]

Half of the basis would get a step up.  

"the will it stated his kids got 1/2 of the money"

Did half of the title get transferred to them or is mom picking up the whole sale on her return and the kids get half of the cash?

[judys3]

The will did state his kids got 1/2 the money upon the sale.  The 1099S received by the mom was only for her 1/2 of the sale.  The kids all received 1099S for their portion.

[Just-Lisa-Now- · Accepted solution]

Pretty straightforward then, if they happen to be in a community property state, full step up may be on the table.

[judys3]

it's a good thing we live in Texas.