CathiM
New Member

Deductions & credits

Your get your cost basis start with one third of the FMV of the inherited house on the date of your parent's passing (or an alternative valuation date if the executor chose one). This is called a stepped up basis in the property. Add to that the amount you had to pay to your sisters for the other 2/3 share. You can also add any improvements you have made since you acquired the entire house.

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