A son inherited a house valued at $200,000 with a tax basis of $75,000. What is the son's tax basis for the inherited property?

The son’s tax basis for the inherited property is the fair market value of the property at the time of the decedent's death, which in this case is $200,000. When a property is inherited, the tax basis is "stepped up" to the fair market value at the date of death rather than maintaining the previous owner's basis. This means that the original tax basis of $75,000 is not relevant for the son’s tax purposes.

As such, the son's tax basis for the inherited house would be $200,000, which reflects its current value and will be important for calculating any potential capital gains tax if he decides to sell the property.