If they gift the property to you, then your cost basis is whatever they paid for the property plus improvements. If they sell it to you, then your cost basis is what you paid them for the property.
If they sell you the property, they may have to pay capital gains tax. If they gift you the property, technically they would be liable for gift tax for the value of the property less the $14,000 annual exclusion. In practice, since the gift can go against their lifetime gift/estate exclusion, which is now over $5 million, they wouldn't have to pay.
There are Medicaid considerations as well, whether they are currently on Medicaid or you expect them to in the future. This whole area is very messy. It is best you retain a lawyer who specializes in "elder law".
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Today's Featured Article - Tractor Profile: Allis-Chalmers Model G - by Staff. The first Allis-Chalmers Model G was produced in 1948 in Gasden, Alabama, and was designed for vegetable gardeners, small farms and landscape businesses. It is a small compact tractor that came with a complete line of implements especially tailored for its unique design. It featured a rear-mounted Continental N62 four-cylinder engine with a 2-3/8 x 3-1/2 inch bore and stroke. The rear-mounted engine provided traction for the rear wheels while at the same time gave the tractor operator a gre
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