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Subject:  Re: House transfer: Father to Sons Date:  6/20/2006  8:31 PM
Author:  ptheland Number:  87486 of 127613

Does the retained life estate by "Dad" change any of the responses about basis? What about IRC 2036?

I'm a little unclear on whether they're talking about a life estate or JTWRS. The first comment from the OP mentions JTWRS. Should it actually be a life estate rather than JTWRS, then the valuation of the gifted amount of the house (the remainder interest) becomes an issue. But to the extent that some or all of the house in included in the taxable estate, then there would be a step up in basis. So you do have a point there.

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