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If your parents retained a life estate in the property, you and your brother (as remaindermen) will receive a stepped-up basis per Section 2036(a).

 

Your basis would be the fair market value on the date of death of the last of your parents to die.

 

Consequently, your gain, if any, will be calculated by the difference between the sales price and the fair market value on the date of death of the last to die.

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