My mother purchased her home in 2004 for $235,000.
Death of mother in July 2014, house appraised at $170,000.
I inherited the home and let my aunt live there until her death in April 2021. I did not live there at any time.
I sold the house within 6 months for $250,000.
Can I use the original purchase price as the cost basis, capital gain = $250,000 - $235,000 = $15,000 or do I have to step up the basis to the $170,000 for a capital gain of $250,000 - $170,000 = $80,000?
Thank you.
