Can stepped up basis be applied for property that was inherited by spouse at death of her husband? I thought that it would be the case but my CPA is saying its no longer allowed. Searching around on google it seems its still applicable. Looking for advise ehat publication can I cite to CPA to have a second look.
Property was held in India. Father passed away in 2020. Took almost 5 years to deal with corrupt indian authorities to get the property registered in mothers name before we could sell it in 2025.
And now i am figuring out we may be liable for late filing of form 3520 – foreign inheritance as we were mistaken in understanding that property has to first transfer in mothers name before any tax filing is required. Hopefully we can explain to IRS it was an oversight and there is no loss to IRS as such as due to indian rupee depreciating, we should have capital loss if stepped up basis is allowed.
Posted by gumnamaadmi