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@preparer227 wrote:

Taxpayer and 4 other siblings inherited a house with FVM 62000 in 2016 and was put in estate. In 2016 taxpayer paid estate 20000 for house.   

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Is the taxpayer 1/5 beneficiary of the estate?  If so, the $20,000 he paid to the estate, he gets $4,000 right back.  So it would seem logical to me, he is actually only paying $16,000.

But let's take a step back.  Are you SURE he only paid $16,000 for 4/5th of a $62,000 house?  From the other siblings' viewpoint, that doesn't seem logical at all.

As was pointed out, the cost of the improvements would be added to Basis.