Sale of deceased sons home.

[taxitc]

Father and son built the home together for his son to live in. Both names were on the title. Only the son ever lived in it. The son later became disabled and later died in 2022. The father and wife own their own home out of town. Short time later, they sold the house. The 1099-S record has the fathers Social number on it. The house sold for $215,000, (under the $250,000 exemption ) What to do? Thanks

[Lion]

The father didn't live in the house, so he has NO primary residence exemption.

[taxitc]

Would an inherited basis apply?

[Lion]

What percentage of the house did the father own and what percentage the son? Did the father inherit his son's percentage?

[taxitc]

His father had a 50 per cent interest and did inherit the house.

[Uncle Sam]

Does this at least qualify for long term treatment for the father?

[taxitc]

Would it not be cost of sale at date of death ?

[taxitc]

Yes it does qualify for long term.

[taxitc]

Does anyone think it be proper to call this a cost at time of death at selling price of house.

[taxitc]

Can someone PLEASE Help. I am at a loss what to do. The Tax Book is over my head or I compehend lol splg

[Anarchrist]

What is the "it" & "this" you refer to in post 6, 7, & 9?

An inherited basis applies to the 50% he inherited. If the house cost $100,000 with the father and son each putting in $50,000, then the father's original basis for his half is $50,000. If the FMV was $215,000 on the date of death, the father's basis for the inherited half is $215,000 x 50% or $107,500. Thus his total basis is $157,500.

[taxitc]

Thank you very much.

[Lion]

Are you asking if the father gets a step up in basis (or step down) on the DOD on the 50% father inherited from son? Who inherited the son's 50% when the son died?