Legal Question in Wills and Trusts in New York

Re: son to inherit house on mom's death

Your basis for sale is your Mom's original cost plus repairs over the years, if she has gifted it to you during her lifetime. You might have some income tax benefit if you continue to reside there and presuming the current tax laws are not changed. On the other hand, if you inherit it from her, your basis for sale would be the fair market value on her date of death. If you sold it at the same price, you would not have any income tax. The real problem is the repayment of the mortgage. If you cannot work out anything to repay it over time (like a traditional mortgage), you could be forced to sell it. While you might not have an income tax liability, you would not have a house to live in. Maybe you can work something out with the mortgage company, or make some payments while Mom is still alive, to reduce what you owe.