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Neal and His Wife Faye Reside in Texas,a Community Property

Question 115

Multiple Choice

Neal and his wife Faye reside in Texas,a community property state.Their community property consists of real estate (adjusted basis of $800,000;fair market value of $6 million) and personal property (adjusted basis of $390,000;fair market value of $295,000) .Neal dies first and leaves his estate to Faye.What is Faye's basis in the property after Neal's death?


A) $800,000 real estate and $295,000 personal property.
B) $800,000 real estate and $390,000 personal property.
C) $3,400,000 real estate and $295,000 personal property.
D) $6,000,000 real estate and $295,000 personal property.
E) None of these.

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