How do you calculate the basis for the sale by the parent for the deceased daughter's Condo in another state.Do you also have to file a return in the other state?

[taxform1040]

The Parent lives in South Carolina & the daughters condo was in Connecticut.

[TaxMonkey · Accepted solution]

Assuming the parent inherited the condo, they would receive a step in basis to the FMV on the day of death, this is determined by appraisal, although if the sale happened shortly after death using the sale price as FMV is reasonable.  Yes when you sell real property as a non-resident you would generally file a non-resident tax return when that property is located.