Very good example. I assume this only needs to be filed one time. But still a little confused. I read it a few times and want to make sure.
If "your sibling's adjusted basis is 200+400=$600K". Does that mean the 200 (original cost basis + 400 (cash amount she is paying me) = $600K (sister's new cost basis) ?
Dos that mean her basis has been adjusted? I think I am missing something. Thank you.
