Inheritance of Jointly Owned Property

[sneuberg]

What is the name of your state? New York

This question concerns the cost or basis one can declare for a long term capital gain.

BACKGROUND: My mother and father were given property in 1946 by my grandmother. Both my mother's and father's names were on the deed. My father died in 1994. My mother sold a piece of this property (land only) last year (2004).

How is the cost/basis for this transaction calculate?

Is it the cost/basis of my grandmother?

Is it the fair market value of the property in 1994 when my father died?

Is it half the fair market value of the property in 1994.

How does one determine a fair market value for a case like this?

 

[Snipes5]

You add together half of Grandma's basis, and half of the FMV on the date of your father's death.

Then you apportion it to the property sold and the property retained.

Snipes