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Her mom got a divorce from her husband in 1990 i believe, and my wifes moms husband passed away in 1994. They bought the house as a couple i believe in 1959 or 1960. we have made improvements to the house over the course of the past 20 years while her mom continued to live there yes. we paid all repairs, taxes, etc..estimate of repairs/improvements is probably 20k or more. house needs a lot of interior work and has just been gutted of all her moms stuff, and carpets due to cat odor. sell as is maybe like 100k, fix it up and sell fair market probably 155k. there is no mortgage, correct. if we were to rent, after putting money into the house to make it "rentable" (over 10k), we could get 1100 per month. my wife was the executor of the estate, but she basically had no worth when she passed away, as all her house goods were "hoarder" type junk, and my wife paid all her bills/food, etc with her mom SSI benefits and allowed her to keep living there.
So, end result...to incur the most profit and least amt of tax owed on this unfortunate situation, what would be your best advice given the whole ball of wax and circumstances?
I'm not sure how we would even start to try and figure out a tax basis on the house purchased in 1959? So basically we should sell it i think, just wondering if it's worth putting $$ into it before selling, or selling as is as a fixer upper at this point. Thank you for your specific and helpful responses!!