Cost Basis Inherited Property that is now a Rental

ConfusedwithTaxes
ConfusedwithTaxes Member Posts: 2 Newcomer

For the first time I'm trying to do my taxes with FreeTax USA for 2024 but running into trouble reconciling numbers with my bookkeeper for 2023.

I inherited a property with my sister and rented it out in mid 2023. I looked through his file and he is showing $130,000 cost basis. But when I got the appraisal done in 2023, it was listed as $300,000. Shouldn't his cost basis be $150,000?

I can't ask him as I'm no longer going to him. Do I need to refile for 2023? If his cost basis is lower, doesn't that technically benefit the IRS? I'm just worried about being audited and don't mind if I paid more taxes in 2023 due to the lower cost basis. and I'm looking to not have to amend my 2023.

and for 2024 would I be able to use the correct cost basis to $150,000?

Answers