Posted on: 30th Sep, 2007 07:10 am
my in-laws have lifetime use of a home which was given to my wife and her sisters. My father in-law is now leaving the house and it is being sold , what is the cost basis for my wife?
Is your father-in-law given the property legally? Is your wife and her sister are in the title of the porperty?
Hi bluesandyou,
Welcome to the forums.
If the property is being sold by your wife and her sisters, then the cost basis would be the lower of the appraised value at the time when they received the property from your in-laws or the price at which the in-laws purchased it.
Take Care
Welcome to the forums.
If the property is being sold by your wife and her sisters, then the cost basis would be the lower of the appraised value at the time when they received the property from your in-laws or the price at which the in-laws purchased it.
Take Care
Hi Sara,
Is it the price my in-laws purchased the house plus the cost all the capital improvements that they made, i.e. adding two rooms, decks, etc?
Is it the price my in-laws purchased the house plus the cost all the capital improvements that they made, i.e. adding two rooms, decks, etc?
Yes Bluesandyou, the price would include the capital improvements, that is, adding rooms, decks etc.