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View Full Version : Cost basis for inherited property


suzmichelle
Mar 2, 2009, 11:15 AM
My sister & I inherited real estate from our mother. Subsequently, she sold me her portion. I sold the property last year and am not sure what to use as the basis. Do I use the appraised value as of the date I sold or the amount I paid for her portion? For example, the property was worth $80,000 when we inherited it, and I paid her $40,000 for her share. Do I use $80,000 or $40,000 as my cost basis, minus any deductions, of course.

Five Rings
Mar 2, 2009, 11:22 AM
Your basis is your 40,000 (FMV of your half when you inherited the property)+ the 40,000 you paid your sister. 80,000 total.