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June 7, 2019
Question

Estate cap gains loss from house

  • June 7, 2019
  • 1 reply
  • 0 views

The house in my mothers estate experienced severe water damage and will be covered by an insurance claim.  1. Is it correct that the cost basis should be adjusted by deducting the insurance payout from the Date of Death value?  2. If I sell the house as-is, the estate would still incur a capital loss.  Will I be able to transfer that loss to myself, as beneficiary, when the estate is closed?

    1 reply

    Critter
    Employee
    June 7, 2019

    1) yes ... however the fixes increases the basis so they should offset if you do fix the home

    2) correct ... the loss is passed to the beneficiaries