Gifted House

[pugsley305]

My mother put my name and my sisters and her name on her deed in 2006.We had to sell it in 2023 .She paid 15000 for it in 1959.She made 60000 worth of improvements over the years.We each got 46000 would my basis be fmv which was around 96000 in 2006  divided by three.Or do I add improvements and what she paid divided by three.

[DawnC]

Original cost + plus improvements, divided by three.  

Gifted Property - The cost basis of property you received as a gift ("gifted stock") is determined by the giver's original cost basis and the fair market value (FMV) of the property at the time you received the gift.

• If the FMV when you received the gift was more than the original cost basis, use the original cost basis when you sell.  This is the most commonly-encountered situation.
• If the FMV when you received the gift was less than the original basis, and you later sold the property for:
  • More than the original basis: use the original basis.
  • More than the FMV at the time of the gift, but less than the original basis: your selling price becomes the cost basis.  You won't report a gain or loss in this situation.
  • Less than the FMV at the time of the gift: use the FMV at the time of the gift.

Capital Gains