Cost basis refers to the cost of the property adjusted for improvement and can be adjusted up or down for other reason. The IRS has various methods of calculating and tracking cost basis. Read here for more information to determine your cost basis.
When your family owns several real estate investments, it's important to do thorough estate planning so that the wishes of those who own the properties are met. How can you balance a property that needs repairs with ensuring an elderly relative's medical costs are still met? An estate planner can help decipher the tax laws and help make good decisions for the property owner and the children who stand to inherit the home.