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Old 08-15-2017, 01:15 PM
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Determining Cost Basis for Sale of Primary Residence

Interesting situation here. Parents bought a SFR in 1976 for $100,000 joint tenancy primary residence. Father passed away in 1998 (MV estimate $225,000). Mother transferred home asset into her name via quitclaim deed in 2003 (MV estimate $314,000). Home transferred into a revocable trust in 2011 (est. MV $400,000). Home sold in 2016 for $340,000 (she moved into a new primary residence in 2015).

Ownership trail is a bit quirky and I am not sure how all of this factors into the final cost basis of the home. Any assistance is tremendously appreciated.



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Old 08-15-2017, 09:22 PM
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Originally Posted by colessker View Post
Interesting situation here. Parents bought a SFR in 1976 for $100,000 joint tenancy primary residence. Father passed away in 1998 (MV estimate $225,000). Mother transferred home asset into her name via quitclaim deed in 2003 (MV estimate $314,000). Home transferred into a revocable trust in 2011 (est. MV $400,000). Home sold in 2016 for $340,000 (she moved into a new primary residence in 2015).

Ownership trail is a bit quirky and I am not sure how all of this factors into the final cost basis of the home. Any assistance is tremendously appreciated.
Interesting situation here. Parents bought a SFR in 1976 for $100,000 joint tenancy primary residence. Father passed away in 1998 (MV estimate $225,000). Mother transferred home asset into her name via quitclaim deed in 2003 (MV estimate $314,000).====> The basis of the home would step up to the fair market value of the property on the date of father?s death, even if his spouse inherits the property and she has traditionally filed her income tax returns jointly,

Home transferred into a revocable trust in 2011 (est. MV $400,000). Home sold in 2016 for $340,000=======>since she put her home into the trust, the cost basis will typically be that same number. since it's a revocable living trust, the basis typically changes at death.


(she moved into a new primary residence in 2015).==========>> If she has purchased the home, her starting point for determining the property?s basis is what she paid for it.



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