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New Member
posted Jun 1, 2019 9:47:34 AM

How do I determine the cost basis for inherited property. The property was destroyed by fire on the date I inherited it. The person who left it died in the fire

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6 Replies
Expert Alumni
Jun 1, 2019 9:47:35 AM

Inherited property's basis is the Fair Market Value on the date of the decedent's death.  So whatever value it had on the date of death is your basis in the property.    

New Member
Jun 1, 2019 9:47:36 AM

Is it before or after the fire?  The person perished in the fire, so is the basis as if it condo was not destroyed or value after the fire?

Expert Alumni
Jun 1, 2019 9:47:41 AM

It would be the value after the fire.  

Expert Alumni
Jun 1, 2019 9:47:48 AM

Is there anything else I can do to help?

New Member
Jun 1, 2019 9:47:51 AM

Would the insurance be part of the basis?    Just to understand, the appraiser came up with $30,000 as is after the fire, Insurance paid $12,000 so the basis is the $30,000?  (no insurance) It was sold to an investor for $67,000.  Since it was a condo the assoc rebuilds the exterior.  Thank you

New Member
Jun 1, 2019 9:47:53 AM

How do you determine the value after the fire?