Message Font: Serif | Sans-Serif
No. of Recommendations: 0
My parents signed their house over to me in l996 with the stipulation that they could live there as long as they were alive. Both of them have since passed away and I am now faced with having to sell their home which is in New York state. My question is: When figuring out what the taxes are owed after the sale of the house, what would the cost basis of it be. Would I owe taxes on the entire sale price or would I subtract the original purchase price minus all improvements made over the years that my parents lived in the house.

Cost basis to you would be parent's original cost basis plus value of improvements made over the years

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.