How Do You Determine the Cost Basis of an Inherited Property If There Was No Appraisal?
If a property appraisal was never obtained when a parent died (2016), how can we determine the cost basis in order to calc...
Read moreIf your mother continued to live in the house after she transferred it to her children, the IRS deems the property to be in her taxable estate even though she gave it away before her death. This is irrelevant for estate tax purposes since only estates over $11.2 million are taxable, but it’s good for capital gains purposes. As a result of being in your mother’s estate, the basis for the house was changed on her death to its fair market value on that date. This is often called a “step-up” in basis. As a result, the only gain that is taxed to the children is the difference between the fair market value when she died and the net proceeds of the sale, which is probably zero, resulting in no tax.
For more information on paying capital gains on property you inherit, click here.
Local Elder Law Attorneys in Your City
If a property appraisal was never obtained when a parent died (2016), how can we determine the cost basis in order to calc...
Read more
A widowed, 82-year-old woman is currently in a nursing home on Medicaid and is up for renewal of her Medicaid eligibility....
Read more
My father transferred his home to his four children two years ago. We recently sold the hom...
Read moreMedicaid Rules, etc