Quote Originally Posted by EMMANUEL View Post
I have a client that inherited her mother's principal home. I knew her mother pass away, but did not ask if the property was sold. After I filed the return, I did a search and found out they sold it within 5 months after death. I am using the sale price as my step up basis, therefore there is no gain. The question is, should I amend my client's return to report this sale, even though there is no change in liability?
You need to have the appraisal done at Mom's date of death to determine the basis to the client. How do you know that the sale price is the same as the FMV when the client acquired the property. I once owned a property that increased in value 20k per month. I don't think using the sale price 5 months later is accurate.