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Old 04-06-2018, 01:56 PM
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Inherited house basis question

Can anyone point me to any court cases, publications or statutes I can rely on for the inherited home cost basis I describe below?

We had the house appraised for the step up in basis on the date of death. We added our remodeling costs and selling expenses to that basis. We also had to pay a lawsuit settlement to get clear title on the home before we could sell it. We added the settlement amount to the basis.

One of the decedent's sons lived in the house off and on for about 6 weeks while the remodeling was going on, but still had his own house.

I see the remodeling costs and selling expenses in the IRS publications. I want to make sure I have proof for everything I'm reporting on Final 1041 since we're the fiduciary as well as a beneficiary.

Thank you.



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Old 04-07-2018, 04:52 AM
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Can anyone point me to any court cases, publications or statutes I can rely on for the inherited home cost basis I describe below? ====>>you may visit here for more research or i fyu need professinal help you may ocntact an IRS Enrolled aget/a CPA doing axes in yourlcoal area for fed/state taxes.
https://www.irs.gov/forms-pubs/about-publication-530

We had the house appraised for the step up in basis on the date of death. We added our remodeling costs and selling expenses to that basis. =======>>you will use the decedent's original cost basis. This might be the purchase price or a step up cost basisIn most years, your basis for the inherited home is the fair market value on the date the decedent died. If the administrator of the estate votes to use an alternate valuation date for the estate, the inheriting party must be notified. The cost basis is then equal to the FMVof the property or the inherited home either 6 months following the date of death or the date on which the asset was distributed to the person inheriting it, whichever is earlier.





We also had to pay a lawsuit settlement to get clear title on the home before we could sell it. We added the settlement amount to the basis.===========>>I guess so; you may add your legal fees to obtain/ge tclear title to/on the home to the adj basis o fth einherited home.

One of the decedent's sons lived in the house off and on for about 6 weeks while the remodeling was going on, but still had his own house. I see the remodeling costs and selling expenses in the IRS publications. I want to make sure I have proof for everything I'm reporting on Final 1041 since we're the fiduciary as well as a beneficiary.======>> in general expenses ,i.e., legal fees to obtain title to the home ,title search fees title insurance title recording fees or etc that yu pay to obtain title to your home are added to the home's adjusted tax basis. i mean the expenses will increase the value of the inherited home for tax purposes, and reduce the amount of any taxable profit of long term cap[ital gain you realize when you disposeof the home.



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