Cost Basis on Inherited Rental

Forum|Forum|2 years ago
March 16, 2024
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What is my cost basis on a rental property that I inherited half of in 2022? I owned the property half/half with my mother who died in Oct 2022. We purchased together in 04/2021 and split everything when she was alive.

I had a CPA do both of our 2022 taxes last year because of the split/death/trust etc. I noticed that the CPA used my cost (only my half) as the cost basis. I don't think that was correct. Is it correct? FYI, The property was not in the trust.

TIA, Chris

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Best answer by Anonymous_

It appears that you have a split basis.

One-half is your cost basis; what you paid for your half in 2021 plus half of the cost of any improvements made.

The other one-half (acquired from your mother) would be the fair market value of her half on the date of her passing (plus the cost of any improvements you paid for after that date).

I am sorry for your loss.

Anonymous_Answer

Employee

It appears that you have a split basis.

One-half is your cost basis; what you paid for your half in 2021 plus half of the cost of any improvements made.

The other one-half (acquired from your mother) would be the fair market value of her half on the date of her passing (plus the cost of any improvements you paid for after that date).

I am sorry for your loss.

teachwithgames_comAuthor

Thank you for responding

One more question, would it be 50% of the market value for her half the entire year of 2022? She passed in October 2022. Or does Turbotax ask for the date and adjust it for me?

Thanks again, chris