Estate Law Questions? Ask an Estate Lawyer.
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Question: Do I (not being the primary resident in the home since 2003) calculate my capital gains tax from 1963 (when my parents first bought the house?) or from 2002 (when my parents transferred the home into my name and my two brothers' names?) or from 2010 (when my mother -- last surviving parent) entered the nursing home?
Your "cost basis" is the same amount that parents paid for the home since it was gifted to you all from them. When a gift is given, the cost basis just transfers over to the recipient of the gift.
So your cost basis is the $21K when parents purchased the home for capital gains purposes plus any improvements that may have occurred over the years (i.e. new bathroom, additions, outbuildings, etc.)