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Old 04-06-2018, 01:56 PM
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Inherited house basis question

Can anyone point me to any court cases, publications or statutes I can rely on for the inherited home cost basis I describe below?

We had the house appraised for the step up in basis on the date of death. We added our remodeling costs and selling expenses to that basis. We also had to pay a lawsuit settlement to get clear title on the home before we could sell it. We added the settlement amount to the basis.

One of the decedent's sons lived in the house off and on for about 6 weeks while the remodeling was going on, but still had his own house.

I see the remodeling costs and selling expenses in the IRS publications. I want to make sure I have proof for everything I'm reporting on Final 1041 since we're the fiduciary as well as a beneficiary.

Thank you.



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