Adjusted Basis of Home - Estate Property

[incumbent]

This is somewhat of a follow-up question to a previous question I posted. I'm the administrator and an heir for an estate where the decedent was a PA state resident. I'm trying to determine the "Basis of Home". I did not obtain a real estate appraisal for the property around the date of death in April 2019. The house was in poor condition and I paid for an estate cleanout. I sold the property via a private sale for approximately $117k almost a year later in March 2020. At this point, I'm not going to hire any appraisers, real estate agents, etc. to assess the value of the property then or now.

May I calculate the adjusted basis of home by adding $8k of costs incurred to sell the property to the actual sale price of $117k which would equal a "stepped-up basis" of $125k and result in a loss of the aforementioned $8k? The $8k of costs incurred to sell the property includes the estate cleanout costs, closing costs (majority transfer taxes), etc.

[Mike9241]

the cost basis is the FMV at DOD. not necessarily your number unless you can prove FMV on DOD was $117K. this might be correct if in your area FMV for other homes did not appreciated/depreciate over the 1 year period.  you are signing the return under penalties of perjury.  use the wrong value and you also may leave yourself open to suit by the heirs. if you are the sole heir the risk is all yours.