Stepped up cost basis on inherited house: gift bases vs. date of death basis?

[jesdq1]

Regarding the stepped up basis of inherited property or gift:  Warranty deed dated August, 2008 quit claimed the house from mother to mother and son. Warranty deed also gave mother unrestricted right to sell, gift lease... for the mothers lifetime.  Then upon her death property then conveyed to son.  Mother died Nov 1, 2020.  My question is this:  was the house gifted to the son (august,2008) or can I take date of death stepped up basis?  I am thinking that the clause in the warranty deed where the mother maintains complete control over the house allows the DOD stepped up basis ( because the son did not have a right the house until death ) ?

[Camp1040 · Accepted solution]

Was a life estate drawn up between mother and son? Sounds like the basic are in the warranty deed, but son should be identified as the remainderman and the mother is the life tenant, if it is a life estate arrangement then the remainderman (son) would get stepped up basis.

[jesdq1]

thank you

[TaxGuyBill]

That sounds like a "Life Estate", rather than a "Gift".  As such, it receives the Step-Up in Basis.

[jesdq1]

thank you!