"and can get close on cost to build the house"
SOunds like a plan. It's possible that your situation *could* be one of those extreme ones too. But first, I need to know if anyone in the generation chain inherited the house, vs receiving it as a gift. If so, then the cost basis is the FMV of the property on the date of the passing of the deceased. (Not the date of inheritance)
If passed as a gift, then the giver does a "quit claim" deed on the house and the recipient gets the giver's cost basis. (This is obviously what your mom did to pass the property to you.)
If passed through inheritance due to the passing of the owner, then the beneficiary recipient's cost basis is the FMV of the property on the date the person they inherited it from, died. So was the property ever passed this way? Or has it always been gifted?
