@mgawro01 wrote:
Both My Dads and Moms name were on the original deed when they purchased the house (both listed as Grantee). When my Mom passed we filed a quit claim deed to remove my Moms name from the deed and added my name to the deed. My siblings weren't listed on the deed. My Dad listed as Grantor and I was Grantee. Hope that helps
Again:
When your Mom passed, your Dad immediately became the sole owner of the property (in fee simple absolute). At that point, your Dad took your Mom's one-half at a basis which was stepped up to fair market value on the date of your Mom's passing. Therefore, your father's basis was one-half of the stepped-up basis he acquired from your Mom and one-half of his original cost basis (plus the cost of any improvements). Note that if they resided in a community property state, your Dad would have received a stepped-up basis for the entire property (not just one-half).
When your Dad added you to the deed as a remainderman (if he did, in fact, retain a life estate as you previously stated), you were given what is called a future interest and, depending upon state law, that interest was irrevocable and a completed gift (technically, a gift tax return should have been filed).
When your Dad passed, his life estate ended and you became sole owner (in fee simple absolute) and, at that time, your basis would have been stepped up to its full fair market value on the date of your Dad's passing, per Section 1014.
The reason some who are answering in this thread believe one-half of your basis is your Mom's basis is, I believe, because your Mom was on the deed when she passed and your Dad had her removed and added you. However, removing your Mom from the deed was actually not necessary and you received nothing from your Mom as she had already passed leaving your Dad as the sole owner when he quitclaimed the property to you and reserved a life estate for himself. Your interest in the property came directly from your Dad, not your Mom.
