Life Estate Question -Cost Basis
A. Life Estate established by grandmother for her house. She dies in 1991
B. Her son, BOB ,was the Life Tenant
C. Her daughter, SUE, was the Remainderman.
D. BOB lived in the house and rented the house.
E. SUE ,Remainderman, dies in 2012. In SUE 'S will everything was left to her son JIM.
F. BOB, life tenant ,dies in 2019.
G. JIM sells the house in 2020.
Questions on cost basis?
a.1991. when grandmother dies
or
b.2012 when SUE the Remainderman dies.
or
c.2019when BOB ,Life Tenant, dies.
If the answer is b or c do we have to take into consideration the depreciation deduction take by BOB
Life Tenant when rented
Thanks for your help
