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New Member
posted May 31, 2019 5:53:55 PM

How do I figure out the cost basis on a piece of property that was inherited 20 years ago

My mother left me an acre of property in South Carolina and I just sold it.  How do I figure out the capitol gains.

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4 Replies
Level 15
May 31, 2019 5:53:56 PM
Level 15
May 31, 2019 5:53:59 PM

The cost basis of inherited property is the Fair Market Value (FMV) on the date of death. So, it doesn't matter what your mother paid for it. The estate executor may have done an appraisal, at that time. So. it may be in your records.

A little internet research can find you real estate historical prices graph for your area and that's close enough for government work. If you used a realtor, their estimate is probably good enough

I would use the property tax assessment, from that year. If you don't have a copy, you may be able to get that info from the tax assessor.

New Member
Mar 9, 2020 4:37:07 PM

Can I deduct amount of taxes I paid while holding the inherited property until it was sold?

Expert Alumni
Mar 9, 2020 4:51:52 PM

Real estate taxes (also called "property taxes") for your main home, vacation home, or land are an allowable itemized deduction if they're based on the assessed value of the property and the property is for your own personal use. 

 

@rachel2020