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<p class="MsoNormal"><span style="font-size:11.0pt">Heather, doesn’t JTWROS mandate equal ownership, as one of the “four unities”? So that adding Woman to title, even as an EP tool, would necessitate an inter vivos gift of 50% of equity, leaving Man with only
50% ownership at time of death. Or does the IRS treat it differently?<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt">Sincerely,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">Eric<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">Eric C. Nelsen<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">Sayre Law Offices, PLLC<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">1417 31st Ave South<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">Seattle WA 98144-3909<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">206-625-0092<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><a href="mailto:eric@sayrelawoffices.com"><span style="color:#467886">eric@sayrelawoffices.com</span></a><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">From:</span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"> wsbarp-bounces@lists.wsbarppt.com <wsbarp-bounces@lists.wsbarppt.com>
<b>On Behalf Of </b>Heather de Vrieze<br>
<b>Sent:</b> Tuesday, September 17, 2024 11:48 AM<br>
<b>To:</b> WSBA Real Property Listserv <wsbarp@lists.wsbarppt.com><br>
<b>Subject:</b> Re: [WSBARP] Stepped up basis<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">The portion of the property that would receive a basis adjustment is directly related to the portion owned by the decedent.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">If in your example the Man had purchased the property and added the Woman to title as JTWROS as an estate planning tool, then 100% of the property would be included in the estate of the Man who died (for estate tax purposes) and would receive
a basis adjustment. <o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">If the property were purchased jointly and they had contributed to it equally, 50% would receive a basis adjustment.
<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">From IRS pub 551<o:p></o:p></p>
<p class="MsoNormal"><b>Property Held by Surviving Tenant<o:p></o:p></b></p>
<p class="MsoNormal">The following example explains the rule for the basis of property held by a surviving tenant in joint tenancy or tenancy by the entirety.<o:p></o:p></p>
<p class="MsoNormal"><b><i>Example.</i></b><o:p></o:p></p>
<p class="MsoNormal"> <o:p></o:p></p>
<p class="MsoNormal">John and Jim owned, as joint tenants with right of survivorship, business property purchased for $30,000. John furnished two-thirds of the purchase price and Jim furnished one-third. Depreciation deductions allowed before John's death were
$12,000. Under local law, each had a half interest in the income from the property. At the date of John's death, the property had an FMV of $60,000, two-thirds of which is includible in John's estate. Jim’s basis in the property at the date of John's death
is figured as follows:<o:p></o:p></p>
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<p class="MsoNormal">Interest Jim bought with his own funds—<sup>1</sup>/<sub>3</sub> of $30,000 cost<o:p></o:p></p>
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<p class="MsoNormal">$10,000<o:p></o:p></p>
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<p class="MsoNormal"> <o:p></o:p></p>
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<p class="MsoNormal">Interest Jim received on John's death—<sup>2</sup>/<sub>3</sub> of $60,000 FMV<o:p></o:p></p>
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<p class="MsoNormal"><u>40,000</u><o:p></o:p></p>
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<p class="MsoNormal">$50,000<o:p></o:p></p>
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<p class="MsoNormal">Minus: ½ of $12,000 depreciation before John's death<o:p></o:p></p>
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<p class="MsoNormal"><u>6,000</u><o:p></o:p></p>
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<p class="MsoNormal"><b>Jim's basis at the date of John's death</b><o:p></o:p></p>
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<p class="MsoNormal"><b>$44,000</b><o:p></o:p></p>
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<p class="MsoNormal">If Jim hadn't contributed any part of the purchase price, Jim’s basis at the date of John's death would be $54,000. This is figured by subtracting from the $60,000 FMV the $6,000 depreciation allocated to Jim's half interest before the
date of death. <o:p></o:p></p>
<p class="MsoNormal">If under local law Jim had no interest in the income from the property and contributed no part of the purchase price, Jim’s basis at John's death would be $60,000, the FMV of the property.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Heather<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><span style="font-size:16.0pt;font-family:"Vladimir Script";color:#1F497D;mso-ligatures:standardcontextual">Heather S. de Vrieze</span><b><span style="font-size:16.0pt;color:#1F497D;mso-ligatures:standardcontextual"><br>
</span></b><i><span style="font-family:"Garamond",serif;color:#1F497D;mso-ligatures:standardcontextual">Attorney-at-Law</span></i><i><span style="font-size:11.0pt;font-family:"Garamond",serif;color:#1F497D"><o:p></o:p></span></i></p>
<p class="MsoNormal"><i><span style="font-family:"Garamond",serif;color:#1F497D"><img border="0" width="189" height="105" style="width:1.9687in;height:1.0937in" id="Picture_x0020_2" src="cid:image001.jpg@01DB08FA.056AC090"></span></i><i><span style="font-family:"Garamond",serif;color:#1F497D;mso-ligatures:standardcontextual"><o:p></o:p></span></i></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:Nyala;color:#44524E;mso-ligatures:standardcontextual">3909 California Avenue SW<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:Nyala;color:#44524E;mso-ligatures:standardcontextual">Seattle, WA 98116-3705
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:Nyala;color:#44524E;mso-ligatures:standardcontextual">(206)938-5500
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<p class="MsoNormal"><span style="mso-ligatures:standardcontextual"><a href="mailto:heatherd@westseattlelaw.com"><span style="font-size:10.0pt;font-family:Nyala;color:#44524E">heatherd@westseattlelaw.com</span></a></span><span style="font-size:10.0pt;font-family:Nyala;color:#44524E;mso-ligatures:standardcontextual">
<o:p></o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:9.0pt;font-family:"Arial",sans-serif;color:#002E8A;mso-ligatures:standardcontextual">Click here to connect with de Vrieze | Carney on Facebook:
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">From:</span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">
<a href="mailto:wsbarp-bounces@lists.wsbarppt.com">wsbarp-bounces@lists.wsbarppt.com</a> <<a href="mailto:wsbarp-bounces@lists.wsbarppt.com">wsbarp-bounces@lists.wsbarppt.com</a>>
<b>On Behalf Of </b>Eric Nelsen<br>
<b>Sent:</b> Tuesday, September 17, 2024 10:10 AM<br>
<b>To:</b> WSBA Real Property Listserv <<a href="mailto:wsbarp@lists.wsbarppt.com">wsbarp@lists.wsbarppt.com</a>><br>
<b>Subject:</b> Re: [WSBARP] Stepped up basis<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:11.0pt">Please post responses to list!<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">My guess based on logic (“logic” = a way of doing things wrong, but with confidence): There is a step-up in basis only as to the decedent’s interest. By definition, JTWROS interests are equal, so the basis
on his 50% interest is stepped up, but her 50% is not. I have no IRS regulation or statutory cite to back this up.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">Sincerely,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">Eric<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">Eric C. Nelsen<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">Sayre Law Offices, PLLC<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">1417 31st Ave South<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">Seattle WA 98144-3909<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">206-625-0092<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><a href="mailto:eric@sayrelawoffices.com"><span style="color:#467886">eric@sayrelawoffices.com</span></a><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">From:</span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">
<a href="mailto:wsbarp-bounces@lists.wsbarppt.com">wsbarp-bounces@lists.wsbarppt.com</a> <<a href="mailto:wsbarp-bounces@lists.wsbarppt.com">wsbarp-bounces@lists.wsbarppt.com</a>>
<b>On Behalf Of </b>Douglas Scott<br>
<b>Sent:</b> Tuesday, September 17, 2024 9:51 AM<br>
<b>To:</b> WSBA Real Property Listserv <<a href="mailto:wsbarp@lists.wsbarppt.com">wsbarp@lists.wsbarppt.com</a>><br>
<b>Subject:</b> [WSBARP] Stepped up basis<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal">Unmarried (non-marital union) couple owned real estate as joint tenants with the right of survivorship. Man dies and the woman gets the property. Is there a stepped up basis for the woman? <o:p></o:p></p>
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<o:p></o:p></p>
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<p class="MsoNormal"><b><span style="font-size:13.5pt;font-family:"Open Sans",sans-serif;color:#6E8F94">DOUGLAS W. SCOTT</span></b><span style="font-family:"Arial",sans-serif"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Georgia",serif">Rainier Legal Advocates|LLC</span><span style="font-family:"Arial",sans-serif"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Georgia",serif">465 Rainier Blvd. N., Suite C </span><span style="font-family:"Arial",sans-serif"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Georgia",serif">Issaquah, Washington 98027 </span><span style="font-family:"Arial",sans-serif"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Georgia",serif">425.392.8550 (tel)</span><span style="font-family:"Arial",sans-serif"><o:p></o:p></span></p>
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