What is the name of your state? Ohio
Oct. 2002 inherited house in VA (50/50 between brother and I) upon death of father, mother passed away 2001. We filed papers with probate court, listing the value of house around 102000 as determined by the tax assessing paperwork that the court looked up that day in the courthouse. (See that the IRS accepts this as a means of determining value.) Two weeks later, had an appraisial of the property, listing value at 175000.
Aug. 2004 sell the house for 200000. From 2002-2004 the house sat vacant as we determined what to do with house and items in house and finding time to go there and take care of matters. We did do some work on the house prior to selling.
When determining the cost basis, do we need to use the 102000 or can we use the 175000? Big difference in the amount of capital gain that will be taxable!
Oct. 2002 inherited house in VA (50/50 between brother and I) upon death of father, mother passed away 2001. We filed papers with probate court, listing the value of house around 102000 as determined by the tax assessing paperwork that the court looked up that day in the courthouse. (See that the IRS accepts this as a means of determining value.) Two weeks later, had an appraisial of the property, listing value at 175000.
Aug. 2004 sell the house for 200000. From 2002-2004 the house sat vacant as we determined what to do with house and items in house and finding time to go there and take care of matters. We did do some work on the house prior to selling.
When determining the cost basis, do we need to use the 102000 or can we use the 175000? Big difference in the amount of capital gain that will be taxable!