Thank you for the follow up Opus 17, I understand and Acknowledge. I have a call scheduled with a Turbo Tax, 'Tax Expert' later today to discuss this and other issues. Maybe I need an accountant as well. Based on what I understand so far, I would use the following EXAMPLE numbers just for discussion: Total 3-way deal Purchase Cost in 1999 = $226,689 Average of Zillow, Corelogic and Collateral Analytics FMV in April 2023, Further divided by 3 = $104,577.78 Example of Son's Adjusted Basis (using EXAMPLE Numbers): Original Cost (1/3 of Total cost in 1999) = $75,563 Stepped up Basis after Father Died (2nd 1/3rd via implied life estate) = $104,577.78 Remodeling Costs in 2024 (half of total remodeling costs paid by Son and Mom) = $11,000 Basement Addition in 2013/2014 (1/2 of costs paid by Father and Mother) = $20,023 Basement Restoration after Water Damage in 2022 (1/2 of unreimbursed costs paid by Father and Mother) = $2,906.35 Depreciation Recapture (2/3 of Total Depreciation) = ($2,574) Adj. Basis for Son = $211,496.12 Amount Realized 2024 = Sales Price in 2024 minus Selling Costs Son's PnL = 2/3rds of Amount Realized 2024 - Son's Adj Basis Is it fair to spilt the Basement Addition and Basement Restoration expenses between Mother and Son the way it was done or is it already factored into the Stepped Up Basis when Father passed? Thank You!!
