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Old 02-23-2011, 02:03 PM
dbkc
 
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cost basis

My father passed away in December 2009. I received 50% ownership in my fathers house along with my sister via Warranty Deed. We sold the property in 2010. I have been using TaxAct software for several years and it prompted me to enter cost basis as FMV at the time of death, entering 50% of FMV as basis makes capital gain=0. Is this correct?



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Old 02-24-2011, 09:45 PM
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“Is this correct?”---->I guess so; your basis for inherited property from a decedent in 2009 is generally; The FMV of the property at the date of the individual’s death OR the FMV on the alternate valuation date( if applicable).Unless your marginal tax rate in 2009 was higher than 15%, LTCG tax rate is 0%, No LTCG tax. Profit from an inherited property is always a long term capital regardless of when you inherited it. Long term capital gain tax rate for 2009 was 0%( if your personal tax brackets were etiher 10% or 15%) or 15% ( if your marginal tax rate was over 15%)n in 2009.



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