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RD, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 8784
Experience:  CPA, MBA, Over 10 yrs of experience in tax planning and business consulting..
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My Father died in 1967. My Mother was his sole beneficiary ...

Resolved Question:

My Father died in 1967. My Mother was his sole beneficiary and continued to live in their house until 2002. At that time, she gave it to the four kids. The "Cost Basis" of that home, according to the IRS, is it's value at the time of his death. Is it possible to use 2002 dollar values based on inflation. If we can't, our capital gains will be horrible.
Submitted: 8 years ago.
Category: Tax
Expert:  RD replied 8 years ago.

The cost basis will be the fair market value of the house as of the date of your father's death since your mother inherited it from him. You cannot use the 2002 dollar values. However, if you mother made any improvements to the property after inheriting it than you can increase the cost basis with such improvement costs.


Let me know if you have any question.


Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases. Nothing contained in this reply was intended or written to be used, can be used by any taxpayer, or may be relied upon or used by any taxpayer for the purposes of avoiding penalties that may be imposed on the taxpayer under the Internal Revenue Code of 1986, as amended.


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