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Problem - Helene and Pauline are twin sisters who live in Louisiana and Mississippi, respectively. Helene is married to Frank, and Pauline is married to Richard. Frank and Richard are killed in an auto accident in 2019 while returning from a sporting event.
Helene and Frank jointly owned some farmland in Louisiana, a community property state (value of $940,000, cost of $450,000). Pauline and Richard jointly owned some farmland in Mississippi, a common law state (value of $940,000, cost of $450,000). Assume that all of Frank's and Richard's property passes to their surviving wives.
Required -
a. Calculate Helene's basis in the land.
b. Calculate Pauline's basis in the land.
c. What causes the difference? Summarize your answer in a one-paragraph e-mail to your instructor.
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