I inherited California property at "x" appraised value and lived there for 8 years. Then married, changed title to me and the wife (at now "y" appraised value), moved to Utah, and rented out California property. After 12 years, say, now selling California house at sale price "z."
How to figure the basis?=====>> Things get a little more convoluted if you inherit real estate, because the deed that records ownership of the property must be modified to reflect that you?re the new owner. In most cases, the executor of the will or a representative from the probate court will issue a new deed that names you as the property?s new owner. In some states, real estate vests in a beneficiary named in a will at the time of the property owner?s death There?s no legal reason to change the titleThe general rule is referred to as the ?step-up? basis rule. That is, the heir receives a basis in inherited property equal to its date of death value;so, the recipient's basis for inherited property is stepped up or stepped down from the decedent's cost to the asset's fair market value at the decedent's date of death.
The step-up basis rule applies to inherited property that's includible in the deceased's gross estate, whether or not a federal estate tax return was filed.
What paperwork is going to be different because we are Utah residents?=====>>I guess youneed to to contact CA state BOE for more accurate info.