My wife's father named her and her sister along with himself on the quitclaim deed as joint tenants with rights of of survivorship. When he died, the daughters sold the property. Neither of the sister have lived in the home.
You'll need to sign in or create an account to connect with an expert.
You will average the cost basis for when they daughters went on as co-owners and when they took full ownership. You will deduct the cost basis from the proceeds.
For example:
House bought in 1970 for $100,000
Daughters join as owners in 1990, FMV is $150,000; each owner has basis of $50,000
Father dies in 2017, FMV is $200,00; each owner has basis of $100,000
When home is sold, each of the two owners has cost basis of $75,000
Home sold for $210,000, each owner has proceeds of $30,000 ($105,000-$75,000) subject to long term capital gains.
You will average the cost basis for when they daughters went on as co-owners and when they took full ownership. You will deduct the cost basis from the proceeds.
For example:
House bought in 1970 for $100,000
Daughters join as owners in 1990, FMV is $150,000; each owner has basis of $50,000
Father dies in 2017, FMV is $200,00; each owner has basis of $100,000
When home is sold, each of the two owners has cost basis of $75,000
Home sold for $210,000, each owner has proceeds of $30,000 ($105,000-$75,000) subject to long term capital gains.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
Eclipse2024
Level 1
MG26
Level 3
seapoodle
Level 1
mrlloyd95
Returning Member
hbomb272
Returning Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.