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Cost basis of property acquired by quick claim

Posted on: 13th Nov, 2007 01:06 pm
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?
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.
Posted on: 28th May, 2008 05:12 am
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