Problem:
Douglas and Julie are a married couple who live in Louisiana, a community property state. They jointly own property with an adjusted basis of $140,000. On December 2 of this year, Julie died when the property had a fair market value of $160,000.
Required:
Douglas's basis in the property after Julie's death is
- $0.
- $140,000.
- $150,000.
- $160,000.
Note: Be sure to show how you arrived at your answer.