I own a vacation home with my mother. She and my dad bought the home many years ago for $10,000. In 2015, they decided to add me as joint tenant with right of survivorship. The home is located in Michigan, and it will always be my second home (it’s not suitable for year round living). I am not convinced that their choice to add me as JTWROS was the best option, but that was how they wanted to do it.
My father passed away in 2021, leaving my mother and I as the owners. When my mom eventually passes, I will be the sole owner. I am confused about how the basis works in this situation.
I believe that my original basis is one-third of the purchase price ($3,333). I assume that the basis reset when my father died, and it will reset again when my mother dies. Is this correct? And if so, what formulas are used to determine the new basis in each situation?
My father passed away in 2021, leaving my mother and I as the owners. When my mom eventually passes, I will be the sole owner. I am confused about how the basis works in this situation.
I believe that my original basis is one-third of the purchase price ($3,333). I assume that the basis reset when my father died, and it will reset again when my mother dies. Is this correct? And if so, what formulas are used to determine the new basis in each situation?
Statistics: Posted by Gubshu — Tue Jun 25, 2024 5:29 pm — Replies 0 — Views 101