As a result, the remaining two children each possess a 50% undivided interest in the JTROS with a basis of $13,000 ($3,000 original basis plus 50% ($20,000).
An example of the rule is where a father acquires an asset and transfers it to JTROS naming himself and child as JTs.
Another scenario arises where a gift of an asset is made to another, followed by the donee placing the asset in JTROS or using the funds given to acquire property in JTROS, with the donor being one of the JTs.
The proceeds are then used to acquire other real property for $20,000 that is taken in JTROS with father.
A longstanding issue concerning qualified disclaimers of an interest in JTROS involves the start of the disclaimer period.
Pursuant to the regulations, the beginning of the disclaimer period is dependent upon whether the JTROS is amenable to unilateral severance.
Example: Husband and wife hold all of their assets in JTROS between them.