Final answer:
The decedent's share and the survivor's share of community property have a basis equal to the fair market value on the date of the decedent's death.
Step-by-step explanation:
The statement is true. Both the decedent's share and the survivor's share of community property have a basis equal to the fair market value on the date of the decedent's death.
Community property refers to property that is jointly owned by a married couple. In the event of the death of one spouse, the decedent's share refers to the portion of the community property that belonged to the deceased spouse. The survivor's share, on the other hand, refers to the portion of the community property that now belongs to the surviving spouse.
When determining the basis of community property for tax purposes, it is generally set to be equal to the fair market value of the property on the date of the decedent's death.