General question, not for a real situation.
While reading another post about one spouse inheriting the deceased spouse's other 50% of a jointly owned S-Corp it got me wondering about the step up (or down) in basis if they are in a community property state. I've seen that in the case of a residence the surviving spouse gets their basis stepped up to 100% of the FMV on date of death unlike in a non-community property state where only the deceased spouse's 50% gets stepped up. Would this apply to stock in an S-Corp, or any other jointly owned property for that matter? Or is this something unique to the way a residence may be titled?
I am in Illinois and quite thankful that I only deal with a very few residents of CA and WI.