Good Morning,
I have a question along the same lines. A gentleman recently passed away leaving his home and a couple smaller bank accounts to go into his estate. The brother is set to inherit everything. The brother plans on using money from the bank accounts to fix the house up and eventually sell it to a family member. The questions are:
-Does the house step-up to FMV on the date of death?
-When the home is sold (probably two years from now), can the costs to repair the home be used to increase the cost basis to lower the capital gains?
-Would it be more beneficial to transfer the home to the brother's name now, do the repairs, and sell it in the name of the brother? (The brother inheriting everything has health insurance through the state and get assistance paying for it through NYS of Health) In this situation the repairs would increase the basis of the home.
-An estate return will have to be filed each year until the home is transferred or sold, correct?
Is there something else that I am missing? Thank you!
