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Richard, Tax Attorney
Category: Tax
Satisfied Customers: 55717
Experience:  29 years of experience as a tax, real estate, and business attorney.
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I just sold my house as a single person who is a widower. I

Customer Question

I just sold my house as a single person who is a widower. I received a 1099-S from the Escrow company. My husband and I bought the house in 1973 for 14000. He died in 1998 and the market value of the house was 220000 at his death We owned the house as joint tenants. The house was sold for 375000. Selling expenses were 25000. We put 30000 of capital improvements into the house. My question is can I use 1/2 the fair market value of the house at his death as his tax basis and 1/2 the value of my share at original purchase as my share of the tax basis. I would then add both tax basis to get a tax basis for the filing .
Submitted: 1 year ago.
Category: Tax
Expert:  Richard replied 1 year ago.

Good afternoon. My name is ***** ***** I look forward to helping you.

Actually, because you are in CA and CA is a community property state, the entire basis is adjusted at the death of one spouse. So, you can increase the entire basis of the home in calculating your gain. And, because this is your principal residence, you are entitled to an exclusion of up to $250,000 from capital gain on the sale of your principal residence. So, due to the step up of the full basis to fair market value and the exclusion, you will have no gain and no tax. :)

Thank you so much for allowing me to help you with your questions. I have done my best to provide information which fully addresses your question. If you have any follow up questions, please ask! If I have fully answered your question(s) to your satisfaction, I would appreciate you rating my service as OK, Good or Excellent (hopefully Good or Excellent). I thank you in advance for taking the time to provide me a positive rating!

Expert:  Richard replied 1 year ago.

I think I have answered your question fully, but I just wanted to let you know that I will be away at a family dinner for the next several hours. Should you have a follow up while I’m away, I will address it immediately upon my return. Thank you in advance for your patience. I apologize for any inconvenience.

Expert:  Richard replied 1 year ago.

HI there. I just wanted you to know I am back in case you have any further questions. Thanks for your patience.