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Discussion:Confused-JTWROS non-married

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Discussion Forum Index --> Advanced Tax Questions --> Confused-JTWROS non-married


Discussion Forum Index --> Tax Questions --> Confused-JTWROS non-married

Kbairtax (talk|edits) said:

23 April 2013
Okay, so I have been doing some reading and I am totally confused.

Situation: Father has a taxable brokerage account with Daughter as JTWROS. Father contributed all funds to account and has reported all income over the years. He dies.....what is the basis to the daughter???? NYS so not a community property state..


1- Full step up without any other steps to be taken?

2 - Full step up only if a 706 is required???

3 - NO step up?

4 - Step up of 1/2 since there was an implied gift when her name went on the account??

I seem to have read that all these are options.....

Terry Oraha (talk|edits) said:

23 April 2013
I vote for answer number 1.

Ckenefick (talk|edits) said:

23 April 2013
#1. See Sec 2040 and the regs. With a non-spousal joint tenancy, we go by who contributed what. If the tenancy was created by an insider (one or more of the co-tenants), and if dad contributed 100%, 100% gets included in dad's estate.

Rupert (talk|edits) said:

23 April 2013
#1

Rupert (talk|edits) said:

23 April 2013
From Reg ยง20.2040-1
The entire value of jointly held property is included in a decedent's gross estate unless the executor submits facts sufficient to show that property was not acquired entirely with consideration furnished by the decedent, or was acquired by the decedent and the other joint owner or owners by gift, bequest, devise, or inheritance.

Kevinh5 (talk|edits) said:

24 April 2013
what does community property (or not) have to do with a joint tenancy with a non-spouse?

Ckenefick (talk|edits) said:

24 April 2013
In some states, you're allowed to marry your cousin. It's just not recognized.

Ckenefick (talk|edits) said:

24 April 2013
what

JCCPA (talk|edits) said:

5 April 2014
Hi all:

Adding on to this topic.

Very similar fact pattern - non community property state - Joint Tenancy Investment Accounts WROS, with two individuals (unrelated)....

The individual who contributed all the stock to the accounts died....

Just read through 20.2040-1 --> (c) Examples (1) - "if the decedent furnished the entire purchase price of the jointly held property, the value of the entire property is included his gross estate."

Therefore, I assume that the other individual WROS gets step-up in basis on the investments.

Is the answer that easy or am I missing something here?

Thanks for any feedback.

CKen - your cousin comment made me laugh ;)

Ckenefick (talk|edits) said:

5 April 2014
You laugh, but Monty Hall from Let's Make a Deal married his cousin...

And I think your conclusion is correct...

JCCPA (talk|edits) said:

6 April 2014
Cken - so did Jerry Lee Lewis...lol.

Wondering when we need to start analyzing laws related to Incest and Married Filing Jointly.

Happy end to tax season and thanks as always for chiming in.

Kevinh5 (talk|edits) said:

6 April 2014
Marylin Munster was prevented from marrying her cousin. They couldn't tell if the cousin was a boy or girl, it looked more like an "IT".

Dennis (talk|edits) said:

6 April 2014
Note: Basic rule is at Reg. 25.2511-1(h)(4)

JCCPA (talk|edits) said:

6 April 2014
Thanks Dennis....and you too Kevin for making me laugh.

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