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Q9 Single choice

A married man is the sole owner of a small business with an estate tax value of $500,000. In addition, he and his wife own an office building as joint tenants with right of survivorship which they purchased five years ago. The building has an estate tax value of $1,500,000. They are considering dissolving the joint tenancy and retitling the building in the name of the husband as sole owner. All the following statements concerning this action are correct EXCEPT:

A
At the husband's death, his heirs would get a fully stepped-up tax basis for the property.
B
At the husband's death, it would be easier to qualify his estate for an IRC Section 303 stock redemption of his business interest.
C
If the husband dies first and leaves the office building outright to his wife, there would be no federal estate tax attributed to its inclusion in his gross estate.
D
If the husband dies first, the probate costs of his estate could be increased.

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