To maximize tax savings, you may want to consult with an expert in the country where the apartment was located (because they may have different rules). The best setup would be as a partnership- your father and his brother contributed the land (so that basis will be the value when they originally inherited it), the builder contributed "sweat equity" so the basis of the property would be the fair market value of the property (land and building) when it was placed into service. They will use that number and any other adjustments to basis and subtract it from the amount they received from the sale then divide it as they agreed upon. @rl50
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