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by CareyBot

DEAR BOB: About a year ago, my elderly mother deeded to me her home and two rental properties I manage for her. Her attorney handled the quitclaim deeds and the recordings. Mother died in October 2006. When I talked to my mother's tax accountant he said, "It's too bad your mother deeded the titles to you. If you had inherited those properties, you would have a new stepped-up basis of market value and you would owe practically zero tax when you sell them shortly after her death." Is this true I don't get a new stepped-up basis? --Ellen H. DEAR ELLEN: Yes. Unfortunately, you didn't inherit those properties. You received the titles as pre-death gifts. As the donee, you took over your donor mother's probably very low adjusted cost basis for the properties. Purchase Bob Bruss reports online....