bg01
New Member

Deductions & credits

It appears this house may have been deeded as a Life Estate. The question reads in part ..."A quit claim was done, filed and while he has life use the house has been "mine" since..." The statement "he has life use" is what caught my eye.

If that is true, then I believe the capital gains owed will have a cost basis of the homes Fair market Value as of the date of the fathers death minus any improvements made to prepare it for sale.