What is the name of your state? California
I am asking this question for a relative who lost her husband earlier this year. She will be filing a joint tax return for 2007, since he just died this year. She is considering the sale of some taxable mutual funds, which are held in the name of a revocable living trust. These mutual funds were specified as California community property in the trust, so they receive a full step-up in basis.
Her question is concerning tax reporting if she sells these mutual funds in 2007. Is it okay that she'd report the sale of the stepped-up assets on the same Form 1040 as she is filing a joint return with her deceased husband? In other words, can she inherit a fund/stock and yet file with the person she's inheriting from?
Thanks for your help!
I am asking this question for a relative who lost her husband earlier this year. She will be filing a joint tax return for 2007, since he just died this year. She is considering the sale of some taxable mutual funds, which are held in the name of a revocable living trust. These mutual funds were specified as California community property in the trust, so they receive a full step-up in basis.
Her question is concerning tax reporting if she sells these mutual funds in 2007. Is it okay that she'd report the sale of the stepped-up assets on the same Form 1040 as she is filing a joint return with her deceased husband? In other words, can she inherit a fund/stock and yet file with the person she's inheriting from?
Thanks for your help!