Inherited Property Basis Quiz

The basis of inherited property is generally stepped up to its fair market value on the date of death of the decedent

The inheritor's basis in the property is always equal to what they paid for the property

The basis of inherited property may be stepped up to the fair market value of the property on the date of death, even if the property was not owned by the decedent in joint tenancy with the spouse

A qualified joint interest is a type of ownership that allows the surviving joint tenant to inherit the property without having to pay estate taxes

Joint tenancy with rights of survivorship is a type of ownership that requires the surviving joint tenant to go through probate to inherit the property

In community property states, all property acquired during marriage is considered to be separate property

Community property is only recognized in eight states

When one spouse dies in a community property state, the surviving spouse inherits the deceased spouse's half of the community property

The surviving spouse's basis in the inherited property in a community property state is equal to the fair market value of the property on the date of death of the surviving spouse

The surviving spouse's basis in the inherited property in a community property state is equal to the fair market value of the property on the date of death of the deceased spouse

The basis of inherited property is stepped up to the fair market value of the property on the date of inheritance

The rules for inherited property on a tax return apply only to property inherited from a spouse