Property is located on island of Maui. Taxpayer lives on island of Oahu. Taxpayer's father purchased the home with his mom in 2004 who died a few years later. He became the sole owner of the home.

I remember reading somewhere that said when real estate is owned by parent and child and one dies, there is no step up in basis.

In 2015, the State agreed to make the taxpayer's father a ward of the state but while waiting for housing, he was allowed to stay in his home.

Taxpayer traveled between the two islands for various court proceedings including but not limited to obtaining the home and later, getting it ready for sale. Maui County recorded the sale of property to her in April 2016 Taxpayer's father was placed in assisted living in November 2016.


1) Could anyone verify my saying that there is no stepped up basis in this case?
2) Can taxpayer add airfare, rental car and hotel costs to basis when she flew to court for proceedings to acquire the title?
3) When she traveled to get the place ready to sell, could she add the hotel and airfare costs to the selling costs? I'm assuming that meals are not a deductible in questions 2 and 3.
4) During the time the father lived there without title and without paying rent to the daughter, she maintained the place at her own expense, with the intent of selling it once he was placed.
Would she be able to use any of these payments towards the selling costs?

He had no money to take care of the place that he was living in for free. I am assuming that because he was a ward of the state, she would not be able to take him as a dependent.

She had to maintain the place not only to keep him safe but to at least minimally maintain it so she could sell it.

5) Is it fair to assume that anything she paid prior to her getting to title, she can't use towards the sale of the cost of the house?

Thanks! Any help and guidance would be appreciated.