Client was one of 6 cousins/siblings who received 1099-S from sale of their aunt's house. Aunt was still living when the house was sold so FMV on date of death does not apply here. What would the basis be? I have not come across a similar thread on this site so I am reaching out to the pros! Thank you.
Typically, the adjusted basis of real estate property would be Acquisition Cost + Improvements - Depreciation. The first question would be how the aunt and cousins/siblings acquired the property. Was it inherited? Gifted? Was there a step-up in basis due to death in prior years after the aunt and cousins/siblings acquired the property? Once you establish the timeline and sequence of events, you will be able to begin the calculation of basis from there.
18-Feb-2020 1:41pm
