Son is added to property of Father by Warranty Deed with right of survivorship one month prior to father's death in February 2013. Father dies on 2-25-13. When son sells property, is cap gains on property the difference between selling price and value of property at father's date of death on 2-25-13? Father purchased property in 1968.
Estate Planning Attorney
I think more facts may be needed but based on the facts presented, 1/2 was gifted to son so it has the original tax basis. The other 1/2 passing to surviving son does received stepped up basis. Thus when the son sells tax basis will be stepped up basis (to dad's date of death value) as to 1/2 of the property and original basis for the other 1/2.
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