Life Estate Question -Cost Basis
A. My grandmother died in 2001
B. Her daughter Rose was listed and granted in the deed of distribution to live in the property for her natural life or until she vacates. She never vacated, she died in 2018.
C. All of the living daughters were listed in same deed of distribution "with the remainder in fee simple, as tenants in common to the following individuals or, if deceased their descendants.
D. The daughter Rose, allowed to live in property died in 2018
E. ALL of the remainder in fee simple daughters are deceased, thus leaving property to their children, their descendants. A total of 10 with a different percent of ownership. (all grand children)
F. Grandchildren sell the house in 2022
#1 Questions on value of property/cost basis determination?
a. 2001, when grandmother dies
or
b. when each remainder daughter dies (different year for each one) ALL prior to 2018
or
c. 2018 when Rose dies (daughter granted to live for her natural life)
#2 Question: we all received a 1099S from the title company when we sold the property in 2022. We all have a different percent of ownership. Which tax form do we use to report the proceeds of sale.
How will the gain be determined?
Thanks for your help. I searched everywhere to get answers, examples. If you can provide answers and source used for answers, it will be greatly appreciated.
