What must be included for tax purposes when property is held as JTWROS?

When property is held as Joint Tenancy with Right of Survivorship (JTWROS), all contributions made by the decedent are included for tax purposes. This is because, for tax purposes, it is essential to establish the basis of the property being transferred upon death, as it affects the determination of capital gains and the overall value of the estate.

In JTWROS arrangements, ownership is shared equally between joint tenants, and upon the death of one tenant, the surviving tenant automatically receives the deceased tenant's share. For establishing the cost basis of the property on the decedent's tax return or estate tax return, the total contributions made by the decedent become significant. This includes any payments made towards purchasing the property or improvements, which are important for accurately reporting the estate’s value and any potential taxes due.

The fair market value, cumulative contributions from the buyer, or the market value at the time of discontinuation are relevant in different contexts, but they do not specifically address the need to include the decedent's contributions for tax purposes in the context of JTWROS. This method of ownership has unique tax implications, and understanding the decedent's contributions is critical for accurate reporting and compliance.