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Subject:  Re: Capital Gains Exemption For Deceased Date:  6/18/2004  1:40 PM
Author:  HokeySon Number:  72277 of 127637

In community property states (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin), husband and wife are each usually considered to own half the community property. When either spouse dies, the total value of the community property, even the part belonging to the surviving spouse, generally becomes the basis of the entire property. For this rule to apply, at least half the value of the community property interest must be includable in the decedent's gross estate, whether or not the estate must file a return.

Thanks for the information. Does that not then mean that if the property is held in JT only one half gets a stepped up basis because due to the right of survivorship, transfer is automatic and does not pass as a part of the decedant's estate?
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