What happens when a Joint Tenant passes away?

[Rick S.]

Here is the scenario. Joint tenants (not married) have lived in their California house as their primary residence for last 10 years, except for 3 years when they rented it (2014-2016). During those years they each claimed rental income, expenses, and depreciation 50/50 on their tax returns. The house has appreciated $350k since purchased. I understand that if one of them passes away, the survivor will own the house 100%.

My questions are regarding tax treatment if the survivor sells the house.

1 - Does the surviving partner inherit the 50% of the house with a capital gains cost basis of the current market value when inherited, or the original purchase price?

2 - Will the surviving partner only have to pay recaptured depreciation for his 50% that was claimed on his tax returns? Or is he now also responsible for the recaptured depreciation the partner that passed? In other words, how does the IRS handle the claimed depreciation of the partner that passed?

Thank you for any help.