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quit claim deed, inherited or stepped-up basis?
Mom conveyed her interest in her Florida condo to her son by quit claim deed in 2003 and retained a life estate. She passed away early this year. For capital gains purposes, does the son inherit her basis or get a step-up at death? Thanks.
She retained a life estate which affects the customary gift/inheritance equation. I believe it can be found under IRC Sections 2036 and 1014.
2 Answers
- Max HooplaLv 79 years agoFavorite Answer
The gift was not complete until title was passed by the mother's death so stepped up basis applies as of date of death.
- Anonymous9 years ago
She gave it to him BEFORE she died, so it is NOT an inheritance and does NOT get a stepped up basis.
- troLv 79 years ago
until you actually inherited at her death it was not your property regardless of the quit claim deed, that merely changed the name on the property tax bill and the recorder's office, as no effect on your actual ownership and eventual sale
