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. Douglas's basis in the property after Julie's death is
A) $0.
B) $140,000.
C) $150,000.
D) $160,000.
D) $160,000.
If the decedent and the decedent's spouse own property under community property laws, one-half of the property is included in the decedent's gross estate and its basis to the surviving spouse is its FMV. The surviving spouse's one-half share of the community property is also adjusted to FMV.
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