Hi Opus17. I appreciate your reply to the question on capital gains and cost basis. It's a challenge to understand cost basis and adjusted cost basis when gifted a house. You mentioned if a spouse dies, the surviving spouse, in a community property state, gets an adjusted cost basis at time of death. Did I understand this correctly? I live in CA. My parents bought a house for 100,000. Years later my dad died. The estate appraisal show the value was 250,000 at his death. My mom deeded/transferred the house to me for "no consideration" many years later prior to her death. Is my adjusted cost basis 100,000 (their purchase price) or 250,000 (FMV at time of his death)? plus improvements. Thank you and if you have any links on this, I'd appreciate it so much.
