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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link="#0563C1" vlink="#954F72" style='word-wrap:break-word'><div class=WordSection1><p class=MsoNormal>Jeff:<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>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. <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>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. <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>“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).”<br><br><a href="https://www.irs.gov/publications/p555#en_US_202001_publink1000168816">Publication 555 (03/2020), Community Property | Internal Revenue Service (irs.gov)</a><br><br>John J. Sullivan<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b>From:</b> wsbarp-bounces@lists.wsbarppt.com <wsbarp-bounces@lists.wsbarppt.com> <b>On Behalf Of </b>Jeff@bellanddavispllc.com<br><b>Sent:</b> Tuesday, November 15, 2022 9:03 AM<br><b>To:</b> 'WSBA Real Property Listserv' <wsbarp@lists.wsbarppt.com><br><b>Subject:</b> [WSBARP] Does the IRS treat Registered Domestic Partners the same as a married couple?<o:p></o:p></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Listmates:<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>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?<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Jeff Davis<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><b><span style='font-family:"Tahoma",sans-serif'>W. Jeff Davis<o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Tahoma",sans-serif;color:black'>BELL & DAVIS PLLC<o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Tahoma",sans-serif;color:black'>Attorneys at Law</span></b><span style='font-size:10.0pt;font-family:"Tahoma",sans-serif;color:black'><br>P.O. Box 510<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Tahoma",sans-serif;color:black'>720 E. Washington Street, Suite 105<br>Sequim WA 98382<br>Phone: (360) 683.1129 <br>Fax: (360) 683.1258 <br>email: </span><span style='font-size:10.0pt;font-family:"Tahoma",sans-serif'><a href="mailto:jeff@bellanddavispllc.com">jeff@bellanddavispllc.com</a><span style='color:black'><br></span></span><a href="http://www.bellanddavispllc.com/" target="_blank"><span style='font-size:10.0pt;font-family:"Tahoma",sans-serif;color:blue'>www.bellanddavispllc.com</span></a><span style='font-size:10.0pt;font-family:"Tahoma",sans-serif;color:black'><br> <br>The information contained in this e-mail message may be privileged, confidential, and protected from disclosure. If you are not the intended recipient, any dissemination, distribution, or copying is strictly prohibited. If you think that you have received this e-mail message in error, please e-mail the sender at </span><a href="mailto:info@bellanddavispllc.com"><span style='font-size:10.0pt;font-family:"Tahoma",sans-serif;color:blue'>info@bellanddavispllc.com</span></a><span style='font-size:10.0pt;font-family:"Tahoma",sans-serif;color:black'> or call 360.683.1129.</span><span style='font-size:10.0pt;font-family:"Tahoma",sans-serif'><o:p></o:p></span></p><p class=MsoNormal><b><o:p> </o:p></b></p><p class=MsoNormal><o:p> </o:p></p></div></body></html>