I recently sold a home that was gifted to me by my dad, who is still alive. Purchase price was $85K in 1998. My mom passed in 2007 and FMV for that year was $168k. I received the home in 2012. I'm getting confusing info on the cost basis for Washington State, which is a community property state.
I've heard I need to take 50% of my dads basis ($85k) and 50% of my mom's stepped up basis, (FMV of $168K), which would be $126K. I've also been told I would just use 100% of my mom's stepped up basis of $168k to help determine the gain. Does anyone have any insight into Washington State real estate capital gains for the situation I'm describing. Thank you!
