Re: Tax Liability question. - Posted by Jeff M
Posted by Jeff M on February 12, 2002 at 11:40:03:
John is the tax expert, and I would listen to all he has to say. In my experience, we did the following. When my Mom died, we had an appraisal of the property done. That became our “cost basis”, and then, 5 years later, we sold it, and paid tax on the difference between selling price and cost basis. Lacking an appraisal, or some reasonable means of valuing the property from when your grand-dad took posession, I think John’s answer is the only answer.
However, I am left with one question. If that house could be considered your grand-dad’s primary residence, he gets an exclusion. I am not sure of the current amount of that exclusion, but it may be worth looking into. Good luck.