Cost Basis on Gifted Property

[Jeremy Martin]

Hello,

I’ve been reading up on carry over basis, but I have a specific question I’ve been trying to find the answer to.

My grandmother transferred a house to me and my twin brother. She is still alive, and my father, her son, is also still alive. Do we still receive the carry over basis even though she skipped her son and gifted the property to us, her grandsons?

I’m asking because today my brother was speaking to the County about the transfer record. They asked our relationship to the gifter. They said the house would be reassessed for property taxes because she skipped a generation. My brother thought the person also mentioned “basis”, but he doesn’t recall exactly what they said. He thought they said we don’t get her cost basis, which would obviously be a huge problem.

Thanks