curiousgeorge
Junior Member
Joined: Feb 22, 2011 22:11:06 GMT -5
Posts: 131
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Post by curiousgeorge on Apr 28, 2016 17:34:57 GMT -5
Owned and lived in property for 12 years. Adding new wife as joint owner.
1. If property sold in 2 years, what would the cost basis, and capital gains exclusion be?
2. On his death, what would the cost basis be for the wife (survivor, joint owner)?
Thanks.
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rangerj
Junior Member
Joined: Jan 21, 2011 13:39:35 GMT -5
Posts: 242
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Post by rangerj on Apr 30, 2016 19:08:15 GMT -5
Adding the new wife as 1/2 owner is a gift to her and 1/2 his basis, that is 1/2 his cost plus the cost of improvements (not repairs) at the transfer date. A gift tax return may be due. If sold within the time of ownership prescribed at the time it is sold, for purposes of the exclusion, the exclusion would be the amount prescribed at that time for Married couples. If he dies and she is the heir of the property, then the FMV of 1/2 the value at the date of death is added to her basis, or the value at six months after the date of death if this provisions is applicable and elected.
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