Thank you for the prompt response, Tagteam. Your solution seems simple and fair. However those 2 words are not frequently associated with dealings with the IRS, so please allow me to tie up any loose ends.
Due to favorable market conditions over the past 20 years the condo was valued much higher at time of sale than at the time of my dad’s death. The “uniformity in reporting basis” clause(s) keeps pointing to the date of death of “the decedant” to determine basis, and also in IRS p551 it states:
“The basis of property inherited from a decedent is … The FMV of the property at the date of the individual's death.” In all I have researched on this issue, the use of the phrase “the decedant” and “the individual” never specify for a situation where the death of a “second decedant” (i.e. the second wife) becomes the trigger date. Can you cite an IRS publication or code (or anything else) where the date of the wife’s death would match to the person the IRS is looking at?
Also, the estate tax exclusion at the time that he passed away was much lower than 2020 when the wife died, so do we get to “step up” all matters related to inheriting the condo -- including the estate tax exemption amount -- to the year of the wife’s death?
I received a 1099-S for proceeds from the sale. When entering into TTx Premier the output to the 1099-B worksheet shows “No Financial Institution.” Should I manually change that on the underlying form(s) and also input the tax ID number of the institution which handled the transaction and sent me the 1099-S?
