My father-in-law passed away in April, 2024. He transferred ownership of his home to my wife and her brother using Virginia's Transfer on Death (TOD) designation in March, 2024. When proceeds from the sale of the home were dispersed between my wife & brother-in-law upon settlement in May, 2024 the realty company sent us an IRS 1099-S form. What (if any) additional paperwork do my wife & I (filing jointly) need to acquire to properly file our taxes for 2024 to take advantage of the tax benefits of the TOD.
My father-in-law had clear title on the home; He purchased it in 1972(?) for $57,000; it was sold for $610,482. My wife's 1099-S was for $305,000. What is the likely federal & state tax liability from the transaction?
Jeff
