Basis of rental property

[TOM]

Mother sets up a life estate and grants her daughter her home in 1969.

Mother dies in 2007. Daughter changes deed to her name without paying any inheritance tax because of the life estate.

Daughter changes home to rental property. For depreciation purposes is daughters basis zero (0), FMV at time of mothers death, or Mothers basis?

Thanks for any help.

Tom

[RoyDaleOne]

Why was the deed not transfer to daughter in 1969.

In most states the incomplete transfer of a gift to

a donee of real property have special rules.

That is by example if I make a deed to you of

a gift of real property but never give you the deed or record

the deed and I died the tranfer of the real property maybe

is questioned. Various rules by various states.

This sounds like poor execution of a planned life estate.

How did the daughter change the name on the deed?

I would check with a real estate lawyer about the gift title issue.

Also, sounds like it may have been part of the mother's

will, a guess about this.

Need more facts to determine the answer to your question.

Was the mother's a taxable estate without the home,

with home? Could by why client wants transfer in 1969.

This not related to title issue.

Note: most of the time the IRS follows the state law as title

on real estste, not allways.

Never an easy answer.

[kcjenkins]

FMV at DOD.

[TOM]

Thank You.

Tom

FMV at DOD.