Stepped up cost basis question

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SpringMan
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Joined: Wed Mar 21, 2007 11:32 am
Location: Michigan

Stepped up cost basis question

Post by SpringMan » Sun Mar 24, 2019 7:57 am

Assuming a married couple has a joint taxable account and one spouse passes, does the surviving spouse get a stepped up cost basis on the 50% they inherited or is it 100% or 0%? State is Michigan if that matters.
Best Wishes, SpringMan

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dwickenh
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Location: Illinois

Re: Stepped up cost basis question

Post by dwickenh » Sun Mar 24, 2019 8:02 am

Yes, there is a step up basis with a formula like this "(Date-of-death fair market value + Old basis) / 2 = New Basis"

This is for a spouse only joint ownership in a taxable account.

link for Michigan specific info.

https://www.legalconsumer.com/inheritan ... D=34&ST=MI
The market is the most efficient mechanism anywhere in the world for transferring wealth from impatient people to patient people.” | — Warren Buffett

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SpringMan
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Joined: Wed Mar 21, 2007 11:32 am
Location: Michigan

Re: Stepped up cost basis question

Post by SpringMan » Sun Mar 24, 2019 8:07 am

Thanks.
Best Wishes, SpringMan

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