Sale of inherited real estate

[Dave183]

If the sales contract (at date of sale) is used to support sales price, what document is used to support the basis value of the inherited real estate?

[R-SchuleCPA]

Your basis is the value on date of the decedent's  death. (Condolences). This is sometimes difficult, in such cases a good faith estimate, from a real estate professional,  will be necessary.

[maureencpa]

The basis of an inherited home is generally the Fair Market Value of the property at the date of the prior owner's death. If no appraisal was done at that time, you will need to engage the help of a real estate professional to provide it for for you. 

This inherited basis plus the cost of repairs & improvements would be used as the tax basis for the sale.

Some additional information:

https://turbotax.intuit.com/tax-tips/rental-property/cost-basis-tracking-your-tax-basis/L4i1f9qB1

 https://www.irs.gov/faqs/interest-dividends-other-types-of-income/gifts-inheritances/gifts-inheritan...