When would FMV of an inherited home be based on if one of the heirs dies during probate?
My sibling and I inherited our parents home when our mom passed away in 2019. My sibling has lived in the home all of her life and continued to live in the home after our mom’s passing. We started the probate process in 2022 to transfer the deed either into both of our names, or for my sibling to buyout my portion of the home and ownership would transfer solely to her. Fast forward to 2024. My sibling passed away while the home was still under probate (she dragged her feet and refused to sign necessary paperwork to close the estate). I now have to start a second probate for my sibling’s portion of the estate and will be selling the home. My question is, when determining capital gain for tax purposes, is the FMV based on the date our mom passed away? Or do I now use the date my sibling passed away?
She also was delinquent on the property taxes for the home and I had to pay ~$9k to bring that up to date. Am I able to deduct this from any capital gain?
