I inherited stock from a joint tenancy stock account I opened with my husband in the late 1980s in the state of Oregon. We moved to California in 2002 and only reinvested dividends until his passing a few years ago. What tax basis do I use if I decide to sell the stock this year?=======>>FMV as other inherited shares; The cost basis for half the stock is stepped up to the value on the date of death.
In general, if you inherit it before 1/1/2010,
the cost basis is "stepped up" from the
original cost paid by the deceased owner
to the FMV on the date it was
bequeathed to you;
If yo inherited during 2010, then,
Do I have to treat the original stock purchase and Oregon-based stock reinvestments as non-community-joint tenancy property and then treat the California reinvested stock purchases as community property?====>>Now you are a full year resident of CA and non resident of Oregon, so,I guess you need to treat the CA reinvested sto ck as community pty in CA state. For more info, you need to contact CA BOE
Or everything as quasi-community property? Lastly, and most importantly, am I allowed to step-up both halves or only his one-half to FMV on date-of-death?
=======>> In non- community property state laws, when a married couple own stock jointly and one spouse dies, 50 % of the cost basis is stepped up /down to the price on the date of death. However, in states with community property laws, the entire basis is stepped up / down. A state's rules for determining the cost basis for surviving spouses apply for both state and federal tax purposes. For both federal and state capital gains tax purposes, stock owned jointly with a deceased owner other than a spouse is handled based on the proportion of the original investment made by the deceased. For example, if the deceased made 40 percent of the original investment in the stock, 40 percent of the cost basis is stepped up / down to the price on the date of death.