DEAR BOB: I read with great interest your recent item about stepped-up basis for inherited property. My parents bought their home near Chicago in 1969. Dad died in 1981. My mom put me on the title with her in 1996. The purpose was to avoid probate when she passed on. She died in 2003. I sold the house in 2004. I keep asking my CPA about my tax situation, but he has never given me a solid answer. I am getting worried and frustrated. He said it depends on whether an IRS Form 1099 was filed on my mom's house sale and if it was sold for the estate of my mom. Please clarify – Pat K. DEAR PAT: As I often say, it's better to inherit real estate than to receive it as a gift shortly before death. Your situation is a classic example. If your mother had given you her home as a gift before she died, your basis would be her presumably very low adjusted cost basis. Purchase Bob Bruss reports online. Instead, Internal Revenue Code 1014 says when a person inherits property they receive it with a...
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