@16SOSnav wrote:
What's the difference between gifted and deeded property?
Title to real estate is transferred via a deed, whether it is gifted to the grantee (i.e., the person receiving title pays nothing or less than fair market value) or whether full value is paid in exchange.
If the intent was that your mother would continue living in the home until she passed when she gave you the house (via deed), then you may have a valid argument that she retained a life estate. If that is the case, then your basis would be stepped up to fair market value on the date of her death.
See https://www.law.cornell.edu/uscode/text/26/2036
You might want to consult local legal counsel and/or a tax professional in your area.
