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Level 3
October 13, 2022

Inherited Property offered for Rent

  • October 13, 2022
  • 1 reply
  • 9 views

I am in the process of amending a clients 2020 tax return and I am stumped. Here are the facts:

1. Inherited the property jointly with a cousin on 2/20/2019

2. Bought cousin out in 2020 for a cost of $2,667

3. Gutted the house and renovated. Started renovations in 2019 and completed them in 2020 for a cost of $14,850

4. Made additional improvements in 2020 for a cost of $10,200

5. Land Value is $5,300

6. Offered for rent in 2020

How do I account for each of the items above on the 2020 tax return?

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1 reply

IRonMaN
Level 15
October 13, 2022

1.basis based on value on date of death for his share

2 basis

3 basis

4 basis

5 basis - but that should have been factored in at step 1

6 Offered or actually collected rent?

Slava Ukraini!
BobKamman
Level 15
October 13, 2022

"Offered or actually collected rent?"

Wouldn't make a difference, to me.