Discussion:Life estate valuation
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| 12 April 2006 | |
| Had a client buy a house and 10 acres from his grandmother but she retained a lifetime right to just the house and lot that the house sits on? I have to set up the farm buildings for depr. He paid $175,000 for the house, farm buildings and 10 acres. I am using the appraisal done by the county to pro-rate the purchase price since they did not do a breakdown of the $175,000. There is no gifting since he is paying pretty the appraised value.
Do I need to make special adjustments to the house since grandmother retained life time right? If so, where do I find the formula to compute this? | |
| 12 April 2006 | |
| Publication 1457 | |
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