Hello, have a question about a cost basis for an asset (property -- land & buildings) that was confiscated by government (nationalized) in the 1940s and recovered in the 2000s. The challenge is that it was part of inheritance. In summary: Region: Eastern Europe - 1949 a fully functioning/producing factory was nationalized by the communist government - 1970s founder/owner passed away and his wife and children received inheritance -- the said property was NOT part of the estate/inheritance (as was owned by communist government ). - 1990s wife passed away and the children inherited her estate -- again, the said property was NOT part of the estate/inheritance - 2000s -- the children (now US citizens) of the owner recovered the property (now only dilapidated buildings and land, not a functioning factory anymore) from government after lengthy court process The property is up for sale. What should the cost basis be for capital gains calculation for the children? Normally, the cost basis is the value on the day a person inherited property. However, during the times of inheritance, the property was not part of the estate. Would appreciate advice or a resource where to seek such advice. Thank you!
