Roberto and Deanna live in Texas, a community property state…

Roberto and Deanna live in Texas, a community property state. They purchased land as community property in 1985 for $60,000, each contributing $30,000. Deanna died and bequeathed her share of the land to Roberto. The land had a fair market value of $88,000 on Deanna’s date of death. What is the basis step-up in the land after Deanna’s death?

Last year, Rudolph refinanced his home. Prior to refinancing…

Last year, Rudolph refinanced his home. Prior to refinancing, his only outstanding debt was the balance due on his original mortgage of $100,000. Rudolph needed some additional money take advantage of an investment opportunity, so upon refinancing, Rudolph took out a 30-year mortgage for $250,000.  As an added benefit to the refi, Rudolph will be able deduct the mortgage interest on the entire $250,000.