The total basis for each remaining sister when they sell the house would be 1/3 of the FMV at death plus 1/2 of what they paid to the third sister for her share.
The basis of property inherited from a decedent is generally one of the following:
When the 3 sisters inherited the property, each would be entitled to 1/3 of the basis (FMV of the house at death). They must also account for the amount they paid for the third sister for her share in the house. Each would be able to add half of what they paid to the sister to their basis in the house. (This is assuming that the 2 remaining sisters contributed equally to buying out the third sister)
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