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Barrister
Barrister, Attorney
Category: Estate Law
Satisfied Customers: 37010
Experience:  16 yrs estate law, real estate. Wills/Trusts/Probate
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My parents bought a home in 1963 for $21,000. In 2002 they

Customer Question

My parents bought a home in 1963 for $21,000. In 2002 they transferred the home into my name and my two brothers' names. I got married in 2003 and moved out of the home, while my two brothers remained living there. In 2009 my father died, and in 2010, my mother had to go into a nursing home, leaving my two brothers living in the home and taking care of all of the property taxes, etc.
We sold our home this year (July 2016). 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?
Submitted: 11 months ago.
Category: Estate Law
Expert:  Barrister replied 11 months ago.

Hello and welcome! My name is ***** ***** I am a licensed attorney who will try my very best to help with your situation or get you to someone who can. There may be a slight delay in my responses as I research statutes or ordinances and type out an answer or reply,but rest assured, I am working on your question.

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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?

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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.

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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.)

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thanks

Barrister

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