Hello - I need some help to better understand the following scenario.
2020-12-23 Peter's Basis of the family home at the time of our mother's death = $146,667
Peter's Share of Capital Improvements: $4,589
2023-07-31 Peter's Adjusted Basis of the family home TODAY = $151,256
2023-07-31 Peter's Share of the FMV of the Home = $175,000
SCENARIO NO. 1
Peter wishes to gift me $50k of his share of the 2023-07-31 FMV of the home.
I will pay him $125,000.
- What is his basis and what is mine for tax purposes? Can you itemize the calculation and tax regs?
