Have a Tax Question? Ask a Tax Expert
I guess I'm a little lost. My wife and I bought the house in 1971 for $20,000. My Mom and Dad bought it from us in 1977 for $38,000. They deeded it back to us in 1987 for $1.00. My father is dead and my mother moved out. What's the capital gain?
Wow! 20% federal? Sounds high! I assume, then,Ican add to the basis with things like a new furnace and AC?
Are you sure about inheritance tax? My attorney said I may have to pay 4.5% which sounds crazy on something I already own.