What is the name of your state? Virginia. I am a new investor in real estate and I am trying to help some people who have found themselves in a sad situation. Sara and Tom are married. They had bad credit, so Sara's dad, Jim, bought their house with them. The deed had the names of Jim and Tom, as the grantees, but not as tenants in entirety. The mortgage was in Jim's name only. After 12 months, Jim died. Now, 6 months later, a total of 18 months after the initial purchase, Sara has breast cancer which has metastasized and they need to sell the house. It has gained $125k in value since they bought it. Is their basis the original purchase price, or did Tom receive a stepped up basis when Jim died?
Are there any other laws that would help them keep the total profit from the house so they can move to a smaller house, any catastrophic illness laws?
Valerie
Are there any other laws that would help them keep the total profit from the house so they can move to a smaller house, any catastrophic illness laws?
Valerie