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I'm trying to get a stock transfer agent to understand that a half step up cost basis should be applied to shares of stock.
They did transfer the stock into the wife's name after her husbands passing.
The transfer agent replied that a step up basis of any kind does not apply.

Again, I will try to request this -

I'm including Page 14 of Publication 559 which lists in the Basis of Inherited Property section:
"Qualified joint interest. One-half of the value of property owned by a decedent and spouse as tenants by the entirety, or as joint tenants with right of survivorship if the decedent and spouse are the only joint tenants, is included in the decedent's gross estate. This is true regardless of how much each contributed to-ward the purchase price.
Figure the basis for a surviving spouse by adding one-half of the property's cost basis to the value included in the gross estate. Subtract from this sum any deductions for wear and tear, such as depreciation or depletion, allowed on that property to the surviving spouse."


And also Page 9 and 10 of Publication 551 which lists
"Qualified Joint Interest
Include one­half of the value of a qualified joint interest in the decedent's gross estate. It does
not matter how much each spouse contributed to the purchase price. Also, it does not matter
which spouse dies first.
A qualified joint interest is any interest in property held by married individuals as either of
the following.
Tenants by the entirety, or
Joint tenants with right of survivorship if the married couple are the only joint tenants.

Basis. As the surviving spouse, your basis in property you owned with your spouse as a
qualified joint interest is the cost of your half of the property with certain adjustments. Decrease
the cost by any deductions allowed to you for depreciation and depletion. Increase the reduced
cost by your basis in the half you inherited."


Can anyone suggest what else should be included to help them understand to correctly adjust the basis?


thanks in advance,
nag
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