Basis in property
My father in law put his house in my wife’s name back in 2013. We did this for Medicaid purposes. In November 2018, the 5-year mark passed so it’s out of his for Medicaid purposes. He passed away last month.
If his basis in the house was 75,000 as of 2013, and it’s now worth 300,000. What is my wife’s basis? Is it her father’s basis or does she get the step-up in basis?
Permalink Submitted by Alan - IRA critic on Mon, 2019-12-09 19:58
Your wife owned the house, so FIL’s death has no affect on the basis. Her basis is 75,000 assuming she did not claim any depreciation on it and her holding period is long term. FIL also made a taxable gift in 2013.
Permalink Submitted by Robert Roselli on Mon, 2019-12-09 20:13
I thought that was the case. So you can’t use the 250,000 on a gifted property. Is that 250,000 exemption only on the property you’ve occupied for a number of years?