Casualty and Theft - Cost or Other Basis of Property

Casualty and Theft - Cost or Other Basis of Property

Cost or Other Basis of Property

Cost or other basis usually means original cost plus improvements.  Subtract any postponed gain from the sale of a previous main home.  Special rules apply to property received as a gift or inheritance. 

See Publication 551, Basis of Assets, for details.

http://www.irs.gov/pub/irs-pdf/i4684.pdf

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