r/tax•
stlcards0811

Quit Claim Cost Basis Scenario

Unsolved

I have been trying to figure out the cost basis for the following scenario but second guessing myself. I would appreciate any thoughts.

The scenario: Mom and Dad bought a house way back for $50k. In 2008, they quit claim deed to add their 3 kids to the property, but only Mom and Dad continue to live and use the house. Dad passes away in 2022. Mom and the 3 kids sell the house in 2025. Note: this occurs in a community property state.

Would each kid get 1/5 of the original $50k purchase price to use as cost basis due to the quit claim gift?

Would Mom’s basis be 1/5 of the original $50k plus 1/5 of FMV stepped up in 2022?

Posted Dec 30, 2025, 9:13 PM UTC

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