Capital Gain Question - selling Quitclaim deeded Property

[sppav0]

What is the name of your state? Wisconsin
My mother recently passed away - she Quitclaimed her home to my brother and me about 8 years ago. When computing Capital Gains from the sale of this property, is the base value the value of which she purchased the property or is the base value the value at the time of the Quitclaim deed?

 

[Ummonx]

see an accountant, this is not a legal question.

 

[abezon]

Lummox, shut up. This is a legal question regarding the basis of gifted property.

When you receive property by gift, your basis is the donor's adjusted basis + any gift tax paid. The adjusted basis is the purchase price - depreciation + the cost of improvements (new room, well, windows, etc).

You'll have to pay capital gains taxes on the profit, unless you qualify to exlcude some of the gains under the personal residence (sec. 121 exclusion).

 

[Ummonx]

I stand corrected I apologize to the poster.