Cost basis of property acquired by quick claim

bluesbyday · Joined: 12 Nov 2007 Posts: 2 1.32 Dollars($)

my father-in-law quit claim his home to his children but retained life use. He recently due to ill health had to move in with one of children and the house was sold. I'm have gotten conflicting information on the children's cost basis in the house, even getting two different answers from the IRS phone help line. Has anyone come across a similar situation and what did you use as your basis for calculating a capital gain or loss?

Niicss · Posted: Wed May 28, 2008 5:12 am Post subject:

Welcome bluesbyday.

To calculating a capital gain or loss tax you will have to add the amount that you have spent for the maintenance and improvement of the property with the price in which you have bought it. And then minus it from the Sale price. To know how it works have a look at http://www.mortgagefit.com/quitclaim/homesale-taxbasis.html#48160

Let me know if you have any further questions.

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