Father purchased home in 1975, and used an attorney to transfer ownership with reserved life use to my brother and I in 1982. In 2019 it was necessary for Dad to move into an apartment, and the home was sold for $150,000. Life use amount based on IRS actuarial tables is 25.771% ($38,657 of sale price). The remainder ownership interest for my brother and I is 74.229% ($111,344 of sale price...$55,672 each. We understand there will be capital gains taxes since home sold during Dad's lifetime and are meeting with accountant later this month. At closing, attorney issued a 1099-S to my brother and I for $75,000 each, reflecting the full $150,000 sale price.
Shouldn't the 1099-S my brother and I received be for $55,671.75, our respective portions of the remainder interest? Is there a reference that explains this?
