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Level 2
posted Apr 13, 2023 10:17:24 AM

Cost Basis on inherited property

Inherited property/mortgage with 3 other siblings (4 of us) and bought them out same year.  I'm now renting out the property but can't figure out the cost basis.  Home was appraised @ 155k, payoff 129,603 and I bought out each sibling for 5k each. 

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1 Best answer
Level 15
Apr 13, 2023 10:41:31 AM

@rpctmc wrote:

Home was appraised @ 155k, payoff 129,603 and I bought out each sibling for 5k each. 

Was this a date-of-death appraisal? If so, you would most likely use that as your initial cost basis and then add the total you paid your siblings (presumably $15,000) in order to arrive at your basis for depreciation.

1 Replies
Level 15
Apr 13, 2023 10:41:31 AM

@rpctmc wrote:

Home was appraised @ 155k, payoff 129,603 and I bought out each sibling for 5k each. 

Was this a date-of-death appraisal? If so, you would most likely use that as your initial cost basis and then add the total you paid your siblings (presumably $15,000) in order to arrive at your basis for depreciation.