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Get your taxes done using TurboTax
I'm at the screen now, however it now is asking for purchase price information that I do not have from 1981 and major improvements along the way.
I'm thinking this might require a deeper conversation with a tax professional.
I am working as POA for a parent and she has sold the home as a Widowed spouse, and in the position as Seller Financer...
This might be just a bit too complex to figure out with the regular questionnaire in Turbo Tax.
if the spouse lived in a community property state at the time of the other spouse's death you would need to know the fair market value on the date of death and the cost of any subsequent improvements. that's what the cost (purchase price) would be for tax purposes. the same would be true in a non-community property state if the deceased spouse was the sole owner. on the state of death.
on the other hand if they lived in a non-community property state and the property was held in joint tenancy 1/2 the "purchase price" would be what was paid originally + 1/2 the cost of improvements after purchase) . the other 1/2 of the "purchase price" would be as above - 1/2 the FMV on date of death + 1/2 improvemts after death.
other scenarios are possible such as life estate. if you are not sure, I agree, consult with a tax pro especially if there is a taxable gain