@kwispy wrote:
It sounds like the state assistance program is commensurate to a tax lien such that the balance may be considered back taxes. If so, it sounds like there's no basis adjustment.
If that is the case, then the taxes would be deductible in the tax year in which you pay (or paid) them and there would be no basis adjustment.
@kwispy wrote:
....I believe the step-up in basis only steps up half of the property since it was held in joint tenancy with me.
Correct; the one-half you acquired from your father is stepped up to its fair market value.
