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william_martinda
New Member

Inherited land in 2009 from death of father, and sold in 2017. We were assigned Joint Tenants with full right of survivorship in 1981. Land basis value as of 09 or 1981?

Father assigned bother and myself as Joint Tenants with full right of survivorship in 1981. We inherited property in 2009 from the passing of father. Trying to determine market value or basis of inherited property; should it be based on inherited year or year we were assigned as joint tenants?

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Accepted Solutions
rjs
Level 15
Level 15

Inherited land in 2009 from death of father, and sold in 2017. We were assigned Joint Tenants with full right of survivorship in 1981. Land basis value as of 09 or 1981?

Were you and your brother the only owners starting in 1981? If so, then you did not inherit the property. It was a gift from your father in 1981, and you and your brother owned it since then. Your father's death did not change the ownership of the property. If this is the case, your basis is your father's basis at the time of the gift, which is probably what he paid for the land when he originally bought it.

If all three of you were joint tenants from 1981 to 2009 - you, your brother, and your father - then you inherited only your father's 1/3 of the property when he died in 2009. Your basis for the 1/3 that you inherited is 1/3 of the fair market value on the date of your father's death. Your basis for the 2/3 that you owned since 1981 is 2/3 of your father's basis at the time that he gifted the 2/3 ownership to you, as I described above.

Either way, of course, you have to split the basis between you and your brother.

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2 Replies
rjs
Level 15
Level 15

Inherited land in 2009 from death of father, and sold in 2017. We were assigned Joint Tenants with full right of survivorship in 1981. Land basis value as of 09 or 1981?

Were you and your brother the only owners starting in 1981? If so, then you did not inherit the property. It was a gift from your father in 1981, and you and your brother owned it since then. Your father's death did not change the ownership of the property. If this is the case, your basis is your father's basis at the time of the gift, which is probably what he paid for the land when he originally bought it.

If all three of you were joint tenants from 1981 to 2009 - you, your brother, and your father - then you inherited only your father's 1/3 of the property when he died in 2009. Your basis for the 1/3 that you inherited is 1/3 of the fair market value on the date of your father's death. Your basis for the 2/3 that you owned since 1981 is 2/3 of your father's basis at the time that he gifted the 2/3 ownership to you, as I described above.

Either way, of course, you have to split the basis between you and your brother.

william_martinda
New Member

Inherited land in 2009 from death of father, and sold in 2017. We were assigned Joint Tenants with full right of survivorship in 1981. Land basis value as of 09 or 1981?

Thank you for your help. I believe this is the answer I'm looking for.

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