I recently sold property that was gifted to me by a family member. How do I calculated the donor's cost basis if the donor inherited the property?

[Coleen3 · Accepted solution]

The donor's cost basis would have been the Fair Market Value on the date of death from the person he would have inherited it from. Have th family member who made the gift go back through tax records, look at real estate tax valuations or any other possible papers that would have recorded that information.

[bryan-little]

The donor is now also deceased. The donor inherited the property in 2013 and gifted it to me in 2014. So the donors cost basis will be the FMV of the property in 2013?

[Coleen3]

Yes. If he made any major improvements between the time he inherited and he gifted, then add that to the basis.