Figuring historical basis on inherited property

Forum|Forum|3 years ago
August 28, 2022
1 reply
0 views

Home originally owned by solely by parent for many decades.

Son takes 1% interest then full interest as follows:

March 15, 2010
1% interest/99% remainder (recorded on deed)
April 17, 2010
Parent died
Son now has 100% interest

September, 2022
Son now selling for $60,000.
How do we determine original basis?
Is it value at parents death?
Can an historical appraisal be used to provide that value?

Thank you in advance.

Not A Product Question

Bsch4477

Employee

If you inherited the home in 2010 the basis is the value of the home at that time plus any capital improvements you made since then. Any reasonable documented estimate of the value at that time may be used. Any capital gain would be excluded if you lived in the home 2 of the last five years.

dvdgarofaloAuthor

Thanks much.

Do you know, would I need an appraisal? Or is a CMA from a real estate agent sufficient? I am actually the agent, the owner selling it is a client. I'll be recommending an accountant but want to give him a general idea.

Bsch4477

Employee

A CMA should be fine. If the seller is eligible for the capital gain exclusion and he doesn’t receive form 1099-S, he would not have to report the sale.