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Mark D
Mark D, Enrolled Agent
Category: Tax
Satisfied Customers: 1249
Experience:  MBA, EA, Specializing in Business and Individual Tax Returns and Issues
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My widowed mothers property was appraised at $200,000 in ...

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My widowed mothers property was appraised at $200,000 in preparation for writing her will in Oct 1996. She died in Aug 1999 and her will was executed. Interests were assigned to 3 siblings in the following percentages: 46.3%, 41.1% and 12.6%, my share being the 46.3%. In 2007, the Property was sold for a net sales price of $942,099.41. How do I determine the "Basis" for income tax purposes for my share of the sale?
Submitted: 8 years ago.
Category: Tax
Expert:  Mark D replied 8 years ago.

The basis in the home would be the value of the home at the time of death of your mother, plus any improvements you did to the home after the date of inheritance and before the date of the sale plus costs of sale. You would times the basis and sales price by the ownership percentages to figure the gain for each individual. If the estate was not large enough to file an estate tax return, you probably did not have an appraisal of the property done at the time of death. I would have a real estate (or two) professional give you estimates of the property's worth at the time of death if this is the case. please let me know if you have any questions.


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