Taxpayer pasted away in 2003 when real estate values were high. He owned 1/4 share of a lake lot which he had inherited. In October 2010 the property went through probate and was transferred to his wife. The probate court "Petition and order for Assignment" listed the value at $10,500. His wife sold the land in 2011 for $14,000. For the cost basis, do I estimate the value in 2003 or use the probate's $10,500? TIA.
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He died in 2003 right? It went through probate in 2010 just because she never got around to doing it before probably. Anyway you take the DOD for FMV (or 6 months later if elected by executor). Did the wife inherit 1/2 interest? Then his FMV for 1/2 and her 1/2 of the basis. If it was totally separate property then full FMV. If in a community property state full FMV.
I wouldn't estimate. Have the client get the FMV by asking the agent who sold the land for her. They can go back in their records and do a comparison FMV.JG -
Usually the county/city has the assessed value for each year or two-yr period, whenever they value it for taxes. Would be on file at courthouse. And that may be lower than FMV. And it would be only HIS interest, stepped-up at DOD. Her interest (basis) remains her cost if jointly owned.Comment
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