jlaramie5
Returning Member

Capital gains calculation with life estate

My father had transferred his house to my sisters and I  but we had a life estate deed as part of this transaction.  He passed away in December 2014 and we sold the house this past summer.  After some research I see that we can use Fair Market value as the cost basis.  Can we still add capital improvements to this cost basis to use as our adjusted basis?

Thanks for your help...