My mother had a stroke and can't communicate with me. I am her conservator and guardian. I must sell a small rental house she owns to help pay the medical bills. I have no idea what she originally paid for the house since my deceased father built it a little at a time and there are no records to be found. How can I figure the capital gains tax on the property?
2007-12-26 09:36:54 · 5 answers · asked by Montani 2 in Business & Finance ➔ Taxes ➔ United States
Check with the county tax assessor to see when it was first picked up on tax rolls and what the assessed value was at that time.
2007-12-26 10:30:18 · answer #1 · answered by Anonymous · 0⤊ 1⤋
The only thing I can think of is to reverse engineer the depreciation schedule. Rental property is generally depreciated over 27.5 years.
2007-12-26 09:42:12 · answer #2 · answered by Anonymous · 1⤊ 0⤋
With no records, unfortunately the basis would be zero.
You send she was renting it out - was she showing depreciation? Try to find an old tax return, maybe last year's - you can get a copy from the IRS if you can't find it, and have power of attorney.
Good luck.
2007-12-26 09:47:59 · answer #3 · answered by Judy 7 · 2⤊ 1⤋
What does the county have recorded as a purchase price?
2007-12-26 09:42:51 · answer #4 · answered by Wayne Z 7 · 0⤊ 0⤋
Your best bet would likely be to get an assesment of the property done first. However, there might be a tax shelter since you will be using the proceeds toward medical expenses. You might want to go to an attorney or CPA.
2007-12-26 09:41:59 · answer #5 · answered by kevin h 5 · 0⤊ 3⤋