In 2005 my Parents deeded their home to myself and brother with each having an undivided one-half interest as joint tenants in common. They reserved for each of them a Life Estate interest.
Father died in 2019 and an appraisal was done. Is this a new bases for property for all that have interest in property?
Sold home in 2020 while Mother was living and she moved to an assisted living. Based on Wisconsin Medicaid Handbook, Life Estate Percentages, Mom’s share at time of sale as life estate holder is 29.526%. Brother’s share as undivided one-half interest: 35.237% and my share as undivided one-half interest: 35.237%
Received 1099-S with total of gross sale, not my 35.237%.
Also received ALTA Settlement Statement - Seller. This form has the following DEBIT items:
Seller contribution, Prorations of property taxes, Commissions, Title Charges, Government Recording and Transfer Charges and (Additional Settlement Charges that are the actual amount paid to Mother, Brother and myself)
On Form 8949 Part II, should box F be checked because got 1099-S not 1099-B?
Question 1: Do I enter in column (d) the Gross Proceeds as reported on 1099-S or my 35.237% of that value?
Question 2: In column (e) do I enter the total base from the appraisal or my 35.237% of interest in property?
Question 3: In column (g) do I enter the amount paid to Brother and Mother plus the total amount for Prorations of property taxes, Commissions, Title Charges, Government Recording and Transfer Charges as a negative number?
Question 4: Can column (h) be a loss and be subtracted for other income on 1040?
Question 5: Should column (f) have Codes E & N?
