A new wrinkle to your response to my original question.
Was this a 'gift' or 'inherited property'?
My brother is claiming that this property was actually inherited, which of course has much more favorable tax consequences. And I read something online that sort of supports that claim.
The specifics were that in 1994, my mother transferred the property to her three children, maybe via a 'Quit Claim'? In any event, she remained in the house until she died in 2003.
From what I've read, the fact that she remained in the house makes the property remain part of her estate in the eyes of the IRS, making it an inheritance, and stepping up the cost basis to the market value at the time of her death.
Of course, I can no longer find the Google reference that I found but do these facts make any sense?
