In a Community Property State, Jointly Owned Property Left to the Surviving

question 1978

Multiple Choice

In a community property state, jointly owned property left to the surviving spouse will have a basis after the estate is settled equal to

• A) half of the basis just before death, plus half of the fair market value at the date of death (if the alternative valuation date was not elected).
• B) half of the fair market value of the entire property at the date of death (if the alternative valuation date was not elected).
• C) the total fair market value of the entire property at the date of death (if the alternative valuation date was not elected).
• D) the decedent's basis before death.

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Definitions:

Employees

Individuals who are hired by a business or organization to perform work in exchange for compensation.

Duty to Reimburse

The obligation to pay back or compensate another party for expenses, losses, or damages incurred on one's behalf.

Authorized Expenditure

An approved expense deemed necessary and reasonable for the operation or management of a business or organization.

Express Authority

The power granted to an agent or representative by clear and explicit instructions from the principal.