I have a client who inherited a condo from his grandmother who passed away. In 2018, the condo was purchased for 50K. In March '22 the client inherited the condo. He did not have a valuation done. I had a realtor friend pull a comp report and condos of similar size and shape sold for 35K between October '21 and May '22.
Since the FMV is less than the cost basis, is FMV still the determining factor? Kind of stinks in this situation.