Posted by William L. Exeter on August 04, 2003 at 10:41:06:
It is the date of death/inheritance.
Gain on sale inherited property with life estate - Posted by Gene Kelly
Posted by Gene Kelly on August 03, 2003 at 16:30:41:
My three sisters and I inherited family home from Mom at her death in January 1994, subject to life estate granted to my Dad. He died in January 2000. I bought out my sisters in September 2000, financed the property to do repairs (have an appraisal for loan) and sold it in December 2001. My accountant INSISTED on using the tax assesment from 1994 to calculate my 1/4 inherited basis (plus purchase from sisters plus repairs). I maintain my 1/4 should be calculated from the termination of the life estate. I also recently paid for an appraisal to estimate value in 1994.
There is a $65k difference from 1994 tax assement to 2000 appraisal and a $47k difference from the 1994 appraisal. What event determines my original basis ?