Sale Of Cabin

[genemisk]

We are selling a Portion of cabin in Wisconsin.

For gain on sale purposes, what is the cost basis to use.

The cabin was gifted to us back in Year 2001.

Would I use a   value of cabin at that point ( I have no idea what it would have been back then)

Then can I add any costs from that point  until today. Note we had damage due to tornado back about 5 years ago, and had to pay $ 's that wasn't covered by insurance. Would these be part of cost Basis also?

[AmyC]

The starting point is the gift in  2001. You receive the basis the donor had. Then you add and subtract since you had storm damage and improvements. See What is the definition of cost basis?

Starting point example:

If the cabin was built in 1950 for $800 and kept being given, then your basis would be $800.

If you had inherited the cabin, it would be for the value on date of death.