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    Trishala Raj's Avatar
    Trishala Raj Posts: 93, Reputation: 1
    Junior Member
     
    #1

    Oct 4, 2020, 07:54 PM
    Cost basis of property when I sell
    What if a parent gifts real property to a child? My name was included in 25% of the title Of land when my dad was alive. When my dad died, I received the remaining 75% to the land. Now after 15 years, I sell the land. What is my cost basis to the land?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,815, Reputation: 846
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    #2

    Oct 4, 2020, 08:58 PM
    When the land is a gift from parent to child, the cost basis is what the PARENT paid for the land.
    Trishala Raj's Avatar
    Trishala Raj Posts: 93, Reputation: 1
    Junior Member
     
    #3

    Oct 4, 2020, 09:05 PM
    So for Cost basis 25% is the cost the parents paid And 75% is the fmv on date of inheritance?

    https://www.law.cornell.edu/cfr/text/26/1.1014-6
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,815, Reputation: 846
    Senior Tax Expert
     
    #4

    Oct 4, 2020, 09:40 PM
    Yes, that is correct

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