house basis

[Bettie Cheek]

My client co-signed a note to buy a house with his brother in November 2004. He died in January 2005. The brother assumed the note and has since sold the house. He paid the mortgage, taxes, insurance and repairs and sold the house in 2006. He does have two homes he deducts the mortgage interest on. Can anyone help with the basis on this for the sale. I have the purchase price. thanks.

[Luis Mopeo]

If the decedent just co-signed, there was no ownership interest, and no step up in basis at death. Unless there was depreciation, basis would be purchase price, capital closing costs, plus improvements.

[Bettie Cheek]

If the decedent just co-signed, there was no ownership interest, and no step up in basis at death. Unless there was depreciation, basis would be purchase price, capital closing costs, plus improvements.

I Just spoke to owner. WHen his brother died, he took up the notes and paid the morgage for about a year and then sold the house. The wife and children signed over their ownership to him before the sale.

[Kram BergGold]

Nothing to report

Your client just co-signed the note. Then he died and his fmaily gifted any ownership he had to the brother, I agree with Luis he had no ownership, so your clients wife has nothing to report. Everything is reportable by the brother.