This was my childhood home. I was "quit claimed this property from my parents trust, by my sister, who was the executor, because my sisters didn't want the home, they wanted their share of the value. We then put this house into service as a rental home. Now are trying to figure out the cost basis and get it correct from the start. We did not live in it since we got it. How do we figure the cost basis?
Your get your cost basis start with one third of the FMV of the inherited house on the date of your parent's passing
(or an alternative valuation date if the executor chose one). This is called a stepped up basis in the property. Add to that the amount you had to pay to your sisters for the other 2/3 share. You can also add any improvements you have made since you acquired the entire house.
Your get your cost basis start with one third of the FMV of the inherited house on the date of your parent's passing
(or an alternative valuation date if the executor chose one). This is called a stepped up basis in the property. Add to that the amount you had to pay to your sisters for the other 2/3 share. You can also add any improvements you have made since you acquired the entire house.
I was on hold with the IRS for 30 minutes. The person sounded like they were from Jamaica. They couldn’t find anyone to answer my questions. She told me to search on line. Thank you, Turbo TaxCathi!!