The cost basis for you will be half of the fair market value (FMV) on the date of death and half of your father's actual cost of the home since it was actually gifted to you in 2008. You may have to use an educated amount from information you have. You would have been considered equal owner with your father during those years from the date your name was put on the deed.
Once you determine the cost basis for yourself you will report the sale for your half of the house. As far as your siblings they would report their proportionate share using your half the FMV on the date of death ($300k per your information) for the half they actually inherited. Since your father put you name on the house, the other siblings were entitled to his half of the house as inheritance. They would split the half of FMV between them.
If you did not live in the home it would be considered an investment sale, not a home sale. It would be the same for any of the siblings.
If you were issued a 1099-S, you can issue a 1099-S to each of them for the part of the proceeds they each received. It moves from you to them (assuming you did receive a Form 1099-S, if not there is nothing for you to complete for them).
Nominee returns.
Generally, if you receive a Form 1099 for amounts that actually belong to another person or entity, you are considered a nominee recipient. You must file a Form 1099 with the IRS (the same type of Form 1099 you received). You must also furnish a Form 1099 to each of the other owners.
File the new Form 1099 with Form 1096 (this is a transmittal for the 1099) by mailing to the Internal Revenue Service Center for your area. (Provided on the Form 1096)
- On each new Form 1099, list yourself as the payer and the other owner, as the recipient. On Form 1096, list yourself as the nominee filer, not the original payer. The nominee is responsible for filing the subsequent Forms 1099 to show the amount allocable to each owner.
The forms filed with the IRS should be the red copy so if you don't have a color printer, go to the IRS website and order the forms here:
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