To be clearer, my aunt added my self an 3 siblings to her primary home's deed in 1995. The approximate value then was $140,000. She lived in the house by herself, and paid all bills and expenses for the house, to the day she passed away in February 2017. On that day the home became my siblings and mine. The house was not in her will, since it would automatically become ours. Approximately 6 - 7 weeks after her passing, we listed the house for sale with a realtor at the appraised value of $339000. It sold the first day for $335,000.
Also, the house is in Long Island, NY, and all 4 of us live in New Jersey.
At the time of the closing a NY CPA told us that the cost basis of the house for tax purposes was the day of my aunt's death, since we never received any benefit or gain from the house until its transfer to us. I am trying to determine if this info is correct, since it is true. My aunt had full control of her house. We never received rent, or anything else until my aunt's death.
The four of us will each receive a 1099-S for 25% of the sale, approximately $83,455. Thank you
You'll need to sign in or create an account to connect with an expert.
The CPA is correct, the cost basis is the fair market value of the home on the date of death of your aunt.
When you report the sale of your portion of the property on your return, you will use one fourth of the total cost basis since you will only be reporting one fourth of the total proceeds from the sale.
This type of sale is entered as a sale of an asset that will be reported on Schedule D for capital gains. Using TurboTax, take the following steps to get to that section of your program:
The CPA is correct, the cost basis is the fair market value of the home on the date of death of your aunt.
When you report the sale of your portion of the property on your return, you will use one fourth of the total cost basis since you will only be reporting one fourth of the total proceeds from the sale.
This type of sale is entered as a sale of an asset that will be reported on Schedule D for capital gains. Using TurboTax, take the following steps to get to that section of your program:
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
pamowen1027
New Member
cabg
New Member
taxquestion222
Returning Member
BobK59
Level 2
Booba
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.