That depends. If he truly gifted you both the house and retained no rights, then your basis is the basis your father had [purchase price plus capital improvements]. But most likely, and you will need an attorney to get more information, your father either retained an interest in the house legally, or he ratined it in actuality, in which case it would still be included in his estate and you would get a step up in basis equal to the FMV of the home the day he died. This is a question you truly need to see an attorney well versed in probate and estates. It's worth the time and money to get a good reliable answer.
Eric P. Rothenberg, P.C.
ORSI ARONE ROTHENBERG
160 Gould Street-Suite 320
Needham, MA 02494-2300
Follow my Tweets at http://twitter.com/Tax_Esq
IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS in Circular 230, we inform you that, unless we expressly state otherwise in this communication (including any attachments), any tax advice contained in this communication is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or other matter addressed herein.
Mr. Rothenberg is on target, as usual. The answer to your question depends on the facts of the situation. Given the potential for significant capital gains, you really owe it to yourselves to meet with an experienced probate attorney.
E. Alexandra "Sasha" Golden is a Massachusetts lawyer. All answers are based on Massachusetts law. All answers are for educational purposes and no attorney-client relationship is formed by providing an answer to a question.
Have the numbers crunched by an accountant
henry lebensbaum esq 300 Brickstone Sq Ste 201 andover, ma -- firstname.lastname@example.org (978) 749-3606.
Criminal Law (all courts), Drunk Driving, Drugs, Violence, Sex Offenses, theft, SORB, Divorce Child Custody Alimony Child Support & Modification, Contempts & Paternity Juveniles Domestic Violence & Restraining Orders, Business Law, Personal Injury, Guardianship, Conservatorship & Estate Administration & Legal Malpractice. For these & other areas, contact me. Email sent may be copied intercepted or held by computers.
Criminal Law (all misdemeanor & felonies in District and Superior Courts), Drunk Driving and Drug arrests, Sex Offenses, SORB, Crimes involving Violence or Theft, Domestic (Divorce, Child Custody, Alimony and Child Support) and Family Law (Modification, Contempts & Paternity), Juvenile Law, Domestic Violence and Restraining Orders, Business Law, Personal Injury claims, Probate Law (Guardianships, Conservatorships & Estate Administration) and Legal Malpractice. For these and other areas, contact me. NOTE: This preceding message DOES NOT create an attorney-client relationship. It is not a protected or confidential communication. The statements made herein are not to be interpreted as representations or warranties of any kind. No reliance should be placed on the statements made herein. It is recommended that the recipient(s) should undertake their own research to reach their own opinion. The writer does not accept professional responsibility on this matter. TO CREATE an attorney-client relationship REQUIRES a signed retainer/fee agreement along with a retainer fee that must be received by my office.
As others have noted, it may depend upon other facts. I.e., if he retained a life estate, then you would get a "step up" in basis. Likewise, if the house received a step up in basis at your mother's death, and the value subsequently went down, you may have a lower gain or no gain. It can get a little complicated. You should either speak with a probate attorney or CPA. Note that there may be title issues as well, depending upon the date of death and the value of the house. Good luck!
Me condolences to you and your family on the passing of your father. It is never easy to lose a parent.
I concur with other counsel and their answers. It does really depend on the circumstances and whether this was in fact a "true gift" before your father passed.
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter. No recipients of content from this site, clients or otherwise, should act or refrain from acting on the basis of any content included in the site without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from an attorney licensed in the recipient's state. The content of this Website contains general information and may not reflect current legal developments, verdicts or settlements. The Firm expressly disclaims all liability in respect to actions taken or not taken based on any or all the contents of this Website. Any information sent to The Firm by Internet e-mail or through the Website is not secure and is done so on a non-confidential basis. Transmission of information from this Website does not create an attorney-client relationship between you and The Firm, nor is it intended to do so. The transmission of the Website, in part or in whole, and/or any communication with us via Internet e-mail through this site does not constitute or create an attorney-client relationship between us and any recipients. Some links within the Website may lead to other web-sites, including those operated and maintained by third parties. The Firm includes these links solely as a convenience to you, and the presence of such a link does not imply a responsibility for the linked site or an endorsement of the linked site, its operator, or its contents. This Website and its contents are provided "AS IS" without warranty of any kind, either expressed or implied, including, but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. Furthermore, The Firm does not wish to represent anyone desiring representation based upon viewing this Website in a state where this Website fails to comply with all laws and ethical rules of that state.
Divorce Child support Alimony DUI Small business taxes Child custody Domestic violence and child custody Guardianship and child custody Legal malpractice and negligence Criminal defense Business Crimes against society Criminal charges for theft Crimes against persons Domestic violence and criminal charges Child support and custody Estates Estate administration Guardianship planning Taxes and estate planning Probate Paternity and child custody Professional ethics Tax law Paternity Guardianship and conservatorship