It'll be your dad's cost basis. So, what your dad paid for it. His wife didn't get a step up in basis as they were married. You didn't get a step up in basis because it was gifted to you.

So, whatever your dad paid is the cost basis for you. It should be easy to find that out.

This post was edited on 3/8/24 at 1:19 pm

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Posted by TorchtheFlyingTiger

1st coast

Member since Jan 2008

2137 posts

Posted on 3/8/24 at 1:50 pm to lsu13lsu

You sure? I thought spouse typically got half stepped up basis but a little search found

quote:
if property is classified as community property, not only does the decedent’s share of property receive a new basis but also the surviving spouse’s share receives this same basis if at least one-half of the community property is includable in the decedent’s gross estate.

CPA Journal

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Posted by LSUFanHouston

NOLA

Member since Jul 2009

37174 posts

Posted on 3/8/24 at 9:27 pm to lsu13lsu

quote:
It'll be your dad's cost basis. So, what your dad paid for it. His wife didn't get a step up in basis as they were married. You didn't get a step up in basis because it was gifted to you.

Louisiana is a community property state. So when dad died, stepmother (his wife, i assume) took a basis equal to 100% of FMV at dad's DOD.

When stepmother gifted to the OP, the OP took stepmother's basis in the property due to the gift.

The OP needs a retroactive appraisal. Remember, if you can't prove basis, the basis is zero.

To everyone else on here, please please get appraisals done at date of death. Usually they are done via probate, but if assets pass outside probate (such as a revocable trust) these things tend to get missed.

It's much easier to deal with this in relative real time.

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