Quote:
Originally Posted by Jeremy Caldwell Ohio More research has turned up more information.
My father and uncle entered into a Quit Claim Deed with my Grandfather in Feb of 2004. My Grandfather lived in the residence until his death in June 2006. At that point my Grandfathers name was officially removed from the deed in August of 2006.
Now that the house has been sold to me in 2014, what does my uncle and father use as the basis for figuring the capital gains tax? |
The IRS treats a quitclaim deed as a gift,;instead of their property’s value being reevaluated when they received it, their adjusted basis in the home is the same as the basis for their father who held the property before he filed the quitclaim deed. For example, if your GF signs a quitclaim deed on his home, which is worth $300k on the market, but he purchased it for $55k and placed $20k in improvements on it, your adjusted basis is $75k, not $300k as if you inherited it.