Step-up in Basis on Separate versus Community Land
Dear Mr. Premack: I read with interest your column regarding a widow’s step-up in basis. My husband recently passed away leaving me as his only heir. We own a farm. Part of it was inherited and part was purchased by the two of us. How would the step-up in basis apply under these circumstances? The farm and our residence are here in Texas. – EW Your letter deals with the taxes you may owe if you later sell any of your real estate. Capital gain tax is calculated by subtracting