[WSBARP] Does the IRS treat Registered Domestic Partners the same as a married couple?

[John J. Sullivan, Esq.]

Jeff:

 

The reason an asset receives an adjusted basis is that it is included in the
gross estate of a decedent for estate tax purposes. Under WA's CP law the
decedent's gross estate includes half of the DOD value of the CP. That's why
here there is an adjustment to basis (up or down) for both sides of the CP.
This is not the case in all CP states. 

 

It is also not the case with RDPs, so no. The decedent's interest in assets
receives an adjusted basis, but not the share owned by the other partner. 

 

"If you own community property and your spouse dies, the total fair market
value (FMV) of the community property, including the part that belongs to
you, generally becomes the basis of the entire property. For this rule to
apply, at least half the value of the community property interest must be
includible in your spouse's gross estate, whether or not the estate must
file a return (this rule doesn't apply to registered domestic partners)."

Publication 555 (03/2020), Community Property | Internal Revenue Service
(irs.gov)
<https://www.irs.gov/publications/p555#en_US_202001_publink1000168816> 

John J. Sullivan

 

From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com>
On Behalf Of Jeff at bellanddavispllc.com
Sent: Tuesday, November 15, 2022 9:03 AM
To: 'WSBA Real Property Listserv' <wsbarp at lists.wsbarppt.com>
Subject: [WSBARP] Does the IRS treat Registered Domestic Partners the same
as a married couple?

 

Listmates:

 

Do you of you know if the IRS treats Registered Domestic Partners the same
as married couples when it comes to step up in basis?  We know assets
received through probate can get a new cost basis.  The surviving spouse
receiving real property through either a CPA or JTWROS also receives a new
cost basis for the entire property.  Will the same occur for a surviving RDP
receiving the deceased partner's share through either a CPA or JTWROS, or
must it be received through probate?

 

Jeff Davis

 

W. Jeff Davis

BELL & DAVIS PLLC

Attorneys at Law
P.O. Box 510

720 E. Washington Street, Suite 105
Sequim WA 98382
Phone: (360) 683.1129 
Fax: (360) 683.1258 
email: jeff at bellanddavispllc.com <mailto:jeff at bellanddavispllc.com> 
 <http://www.bellanddavispllc.com/> www.bellanddavispllc.com
 
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