@mack12345 wrote:
Hello again.
Revisiting this topic as now it is time to file taxes on the gifted property I sold.
Does FMV at the time of gift have any relevance/value? At time of gift, my mom's stepped up basis was 250,000. The FMV when she gifted it to me was 460,000. If I understand correctly, my basis is her basis, and unfortunately, it is not the FMV at time of gift.
Thank you so much!
Correct. When she gave you her property, she also "gave" you her basis. You do not get an adjustment for the FMV at the time of the gift.
(For this reason, such gifts should be reviewed with a tax planner ahead of time. There may have been a way to accomplish the same overall goal -- whatever that was -- with less tax.)
