@TomD8 wrote:
Note that since you acquired the property prior to your grandmother's passing, your cost basis is her original cost, plus any capital improvements. It is NOT the fair market value at the time of her death.
That really depends upon the circumstances. In short, if the property was part of her gross estate upon her passing (and, hence, acquired from a decedent), then the property gets a stepped up basis.
The property could have been considered to be acquired from a decedent if the intention was to retain a life estate or if the gift, under certain circumstances, was made within three years of death per Section 2035.
