Mr. and Mrs. Hattan have lived in their residence for 20 years and purchased the house for $100,000 as joint tenants with right of survivorship. Mr. Hattan died in May of the current year when the house’s FMV was $800,000. Mrs. Hattan wants to sell the house. What is the tax effect of selling the house this year for $825,000 or next year for $830,000?
A partial list of research sources is:
• Sections 121 and 1014