Parents purchased home in 1962 and transferred ownership to adult children in 2003, retaining life use. Gift tax form was filed, but no gift tax was required due to property value. Dad passed away in 2009 and we have Fair Market Value (FMV) as stepped up basis for 50% portion of donor basis. In 2019 Mom moved into apartment and home was sold. For calculating my capital gains, basis for my Mom's life use is at 50% of original purchase price plus property improvements over the years.
My question relates to my return in TurboTax Premier when entering Second Home Information and specifically, Gift Information input fields.
How do I record Donor's Cost Basis when 50% is stepped up FMV as of the 2009 date of my Dad's death, and 50% is based on my Mom's basis resulting from original purchase price and property improvements? I want to make certain adjusted basis details are accurately recorded on Schedule D and Form 8949.
Thanks!
