Basis date for inherted home sale

Forum|Forum|3 years ago
March 14, 2023
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Two Sisters inherited home several years ago. Stipulation was that their stepfather would have the house until his death whcih happened a couple of months ago. Sisters sold house and each got a 1099-S. Question is whether basis date is when mother died or when stepfather died. Remember they could do nothing with the house, including selling it uptil he passed away. Thank you for any help.

JohnB5677

Did the stepfather inherit the house, or was he just allowed to live in it?

If your mother stated that she wanted the sisters to get the house but stipulated that the stepfather would be allowed to live there, the basis would be the date of your mother's passing.

If your mother stated that your stepfather would own the house until he died, the house ownership would be based on your stepfather's will, but that would make the basis your stepfather's date of passing.

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