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Posted by Billy on March 2, 2008, 8:32 pm
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My friend's father deeded over his house to my friend in 1980 with the right
to live in it till death of the father.
Father died in 2006 and house was sold in 2007.
What is the cost basis on house sale? At time of signing over the deed with
right to live OR when the father died in 2006?
tks all
bw
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Posted by Phil Marti on March 2, 2008, 8:48 pm
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"Billy" wrote:
> My friend's father deeded over his house to my friend in 1980 with the
> right to live in it till death of the father.
This is impossible. Until we know exactly what happened, no one can answer
your question.
--
Phil Marti
Clarksburg, MD
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
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<< to this newsgroup as well as our anti-spamming policy >>
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Posted by Billy on March 3, 2008, 12:08 pm
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> "Billy" wrote:
>
>> My friend's father deeded over his house to my friend in 1980 with the
>> right to live in it till death of the father.
>
> This is impossible. Until we know exactly what happened, no one can
> answer your question.
>
> --
> Phil Marti
> Clarksburg, MD
----- Original Message -----
Newsgroups: misc.taxes.moderated
Sent: Sunday, March 02, 2008 8:48 PM
Subject: Re: House Cost Basis
: "Billy" wrote:
:
: > My friend's father deeded over his house to my friend in 1980 with the
: > right to live in it till death of the father.
:
: This is impossible. Until we know exactly what happened, no one can
answer
: your question.
:
: --
: Phil Marti
: Clarksburg, MD
Father put sons name on deed as owner of property but father has right to
stay in house till death. 1980
Father died in 2006, son sold house in 2007, what is cost basis? The 1980
transaction or date of death value?
I dont know why this hard to comprehend.
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by DF2 on March 3, 2008, 1:10 pm
Please log in for more thread options In misc.taxes.moderated, Billy wrote:
>
>: "Billy" wrote:
>:
>: > My friend's father deeded over his house to my friend in 1980 with the
>: > right to live in it till death of the father.
>:
>: This is impossible. Until we know exactly what happened, no one can
>answer
>: your question.
>:
>: --
>: Phil Marti
>: Clarksburg, MD
>
>
>Father put sons name on deed as owner of property but father has right to
>stay in house till death. 1980
>
>Father died in 2006, son sold house in 2007, what is cost basis? The 1980
>transaction or date of death value?
>
>I dont know why this hard to comprehend.
It may depend on the father's basis.
As a non-expert and un-studied guess, assuming the deed change was a
gift, I would guess the basis would be the lower of the father's
basis or (the value in 1980 reduced by the factors of letting
somebody stay in the house for the life expectancy of the father at
that time).
So in other words, I expect the basis is much lower than either of
your first two alternatives. However my ideas may be quite wrong.
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Arthur Kamlet on March 2, 2008, 11:59 pm
Please log in for more thread options >My friend's father deeded over his house to my friend in 1980 with the right
>to live in it till death of the father.
>
>Father died in 2006 and house was sold in 2007.
>
>What is the cost basis on house sale? At time of signing over the deed with
>right to live OR when the father died in 2006?
Because father retained a life estate, friend did not have free and
unencumbered use of the house, certianly could not transer full title,
and so this was not a completed gift.
Leading to a cost basis of FMV on date of death.
--
ArtKamlet at a o l dot c o m Columbus OH K2PZH
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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