asked

In 2002, our parents deeded their home to my sister and myself, giving them life-time rights to the house. Our Mother died in 2012 and our Father died in 2016. They lived in an assisted living home from 2007 until their deaths. My sister and I sold the house in 2018 for $40,000. We were told by the county assessors office that the house was assessed in 2002 at $34,710. Do we use that amount as the cost basis OR do we use the market value of the house in 2016, the last year a parent was living? We just want to know the cost basis versus our proceeds from the sale of the house ($40,000 in 2018) to know what our capital gain liability will be.

November 29th, 2023

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