"I have lived in GA since 1983 and inherited a house from my father in AL. He died in 1997, but his will had a "Life Interest" clause that allowed his second wife to live in it rent free for her use and benefit during her lifetime. After her death, I received the house. He died in 1997, she died in 2007. After her death, I allowed my mother (the first wife) to live there rent free until she needed additional care and attention. After cleaning out the house, I sold it in July 2018. 1. Which year do I use for basis FMV, 1997 or 2007 (One year would be gain, other would be loss)? 2. Do I have to pay AL taxes (assume non-resident taxes)? 3. In what order do I fill out tax forms (AL first, then Federal, then GA?), and 4. will Turbo Tax Deluxe handle this or do I need to upgrade to Premium?"
