Other Tax Questions
Questions and comments on other topics covered in Fairmark.com, such as UTMA accounts, and any tax questions that don't fit our other categories.
Cost basis for LT gain
Posted by: Drewremedy, April 9, 2017 11:27PM
Mom inherits family home from husband in say 1990.
Properly reported, estate,returns et al...FMV 250,00

Mom added 2 adult daughters in 1995 as JTWROS , but she retained a written and actual life estate until her death..neither daughter ever lived in this house.

Mom dies in 2015.

FMV at dod is 350,000 ..

MY understanding is that due to retained life estate quirks , the daughters have a basis in the whole stepped up to 350,000 , did I get it right?

Re: Cost basis for LT gain
Posted by: Art, April 10, 2017 08:39PM
Sounds right to me. I might be concerned about gift tax, but view this as an uncompleted gift, so ignore gift aspects.



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