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Stepped up cost basis question

Posted: Sun Mar 24, 2019 7:57 am
by SpringMan
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.

Re: Stepped up cost basis question

Posted: Sun Mar 24, 2019 8:02 am
by dwickenh
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

Re: Stepped up cost basis question

Posted: Sun Mar 24, 2019 8:07 am
by SpringMan
Thanks.