Probate inheritance

[Denice Leon]

My client inherited a house from her brother.  Probate took 5 years to finalize.  Is her date of inheritance the date of death or the date she received the property from probate?

 

Thank you,

 

Denice Leon Income Tax Service

[Lee Reams]

The code says the inherited basis is the FMV on the date of decedents death. 

Lee

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	Lee Reams Sr., BSME, EA Chief Content Officer CountingWorks Pro | CountingWorks | TaxBuzz | TaxCPE p: 1.800.442.2477 x240 w: www.countingworkspro.com/  e: lee....@countingworks.com
See how CountingWorks can grow your practice.

 

[PHILIP P STORRER]

Denice…

Section 1014 contains the rules that apply to:

Basis of property acquired from a decedent:

(a)In generalExcept as otherwise provided in this section, the basis of property in the hands of a person acquiring the property from a decedent or to whom the property passed from a decedent shall, if not sold, exchanged, or otherwise disposed of before the decedent’s death by such person, be—

(1)

the fair market value of the property AT THE DATE OF THE DEATH OF 

………….

BASIS of property is factual very factually dependent…

Nuanced in each situation… 

One generally helpful observation is that the basis of property acquired by “gift” equals the basis in the hands of the giver…. Section 1015 AND

The basis of property acquired by purchase is the cost (the price paid)….see section 1011, 1012…

It is generally not a good idea to gift property with a high FMV & low basis (to the giver…)

No exception for long escrow…unless there are shenanigans…

Sent from my iPhone

On Jul 3, 2024, at 3:48 PM, Denice Leon <drl...@pacbell.net> wrote:



My client inherited a house from her brother.  Probate took 5 years to finalize.  Is her date of inheritance the date of death or the date she received the property from probate?

 

Thank you,

 

Denice Leon Income Tax Service

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