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Richard, Tax Attorney
Category: Tax
Satisfied Customers: 53669
Experience:  29 years of experience as a tax, real estate, and business attorney.
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In 2010 I sold a house that I jointly owned with my mother

Customer Question

In 2010 I sold a house that I jointly owned with my mother since 1985. The house was purchased by mother using her money. She lived in it until her death in 2010 and paid for keeping up the house. I never lived in the house. The only reason my name was listed as joint owner was for estate purposes. How do I report the purchse cost of the house? Do I use the purchase price of the house in 1985 or try to figure a cost basis base when I became the sole owner?

Thank you
Submitted: 5 years ago.
Category: Tax
Expert:  Richard replied 5 years ago.

Good evening. If you jointly owned the house with your mother until her death in 2010 at which time you became the sold owner, your basis would be as follows: i) 1/2 of the purchase price (which represents the 1/2 you owned prior to your mother's death) PLUS ii) 1/2 of the fair market value of the house at the time of the death (which represents the 1/2 you acquired as the result of your mother's death, the basis of which is stepped up to fair market value at death).



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