Solved: If you inherit a home that was a parent's primary residence, and then rented it, how do you establish the cost basis when it is sold?
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If you inherit a home that was a parent's primary residence, and then rented it, how do you establish the cost basis when it is sold?

 
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Level 15

If you inherit a home that was a parent's primary residence, and then rented it, how do you establish the cost basis when it is sold?

The cost basis is the fair market value on the date the previous owner died, plus any improvements you made, minus depreciation you took or could have taken while it was a rental property.

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*

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Level 15

If you inherit a home that was a parent's primary residence, and then rented it, how do you establish the cost basis when it is sold?

The cost basis is the fair market value on the date the previous owner died, plus any improvements you made, minus depreciation you took or could have taken while it was a rental property.

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*

View solution in original post

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