@TimHedrick wrote:
1) Does it appear I did everything correctly here?
No, you did not. You do not deduct the balance of the mortgage from the FMV to arrive at your cost basis.
@TimHedrick wrote:
2) Is there any IRS publication or guidance that states what a reasonable time period consists of to use a sales price as the FMV for the cost basis at inheritance? I feel I am safe at ten weeks, but would like to locate something concrete to cite as my justification.
No, but the IRC does reference an appraisal as being the most acceptable evidence of what constitutes FMV. Regardless, I would also feel safe with a sale occurring a mere ten weeks after death.
