Posted on: 27th Mar, 2010 07:51 pm
HELP! A sole parent signed his home over in 5/09 to his daughter on a warranty deed with a lien covenant....and the sole parent died in 07/09. What will the cost basis be....the FMV at the time of transfer or the parent's cost or the FMV at the time of the sole parent's death. Thanks.
Hi curious,
Since the sole parent transferred his home to his daughter through a warranty deed, the daughter's name must have been on the title when her parent died, right? In that case, the cost basis for her would be the fair market value of the property at the time of her parent's death. If there have been any major improvements to the property, that too will be added to the cost basis, while any depreciation will be deducted from it.
Since the sole parent transferred his home to his daughter through a warranty deed, the daughter's name must have been on the title when her parent died, right? In that case, the cost basis for her would be the fair market value of the property at the time of her parent's death. If there have been any major improvements to the property, that too will be added to the cost basis, while any depreciation will be deducted from it.