Taxpayer's name was added by vitue of a deed addition in July 1985. At this point, just his Mother's name and his name appeared on the deed. In June 2010, she passed away. Their was no "will."
He sold the property in Feb. 2014.
Question What is his basis?
1) Since it was a deed addition, does he take on 50 percent of her basis in 1985? Would this change be considered a gift? I know with a gift you take on the donor's basis.
2) Now, she passes away in 2010 as I mentioned earlier. Without a will, does the son take his mother's basis rather than the FMV at time of death?
Thanks for your help,
Taxadvisor VA
He sold the property in Feb. 2014.
Question What is his basis?
1) Since it was a deed addition, does he take on 50 percent of her basis in 1985? Would this change be considered a gift? I know with a gift you take on the donor's basis.
2) Now, she passes away in 2010 as I mentioned earlier. Without a will, does the son take his mother's basis rather than the FMV at time of death?
Thanks for your help,
Taxadvisor VA
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