Q. Is my basis for the sale:
a. $1 shown on Quit Claim deed?
b. FMV of the house in 1986?
c. Value as of his death in 2019 since he “retained” the rights to the property since he had access to it and collected rents that were paid until his death?
d. What my father originally paid for it plus the cost of any improvements over the years.
Answer: d
The usual rule, for a gift, is that the recipient's basis is the giver's basis and that appears to apply in this case. The life estate provision is only for the giver's primary residence and does not appear to apply in your case.
