Ok ... so the tax value ( not a true value for income tax purposes ) for both properties is 165+135=300 which is obviously not the fair market value since you paid much less... 300 x 65% = 165 and 300 x 45% = 135
Thus the ratios is 65% & 45% using this information ... so the purchase price of this "deal" was 180K (the fair market value must be used not the tax value) ... so I would extrapolate the cost basis for each property to be (180 x 65%) = 117K and (180 x 45%) = 81K
This is a correct basis valuation that the IRS will not question in an audit ... of course make sure to add the cost of purchase to the cost basis of each home ... use the same ratios.
