@Sandyjb555
That changes things considerably, because you originally said “life estate“, but “fee simple” has a completely different tax consequence. It also completely changes the picture of whether this is a short term or a long-term capital gain.
I’m on a mobile device and I can’t give a complex answer, I will try later if no one else beats me to it. But I think additional clarification is required on the finances.
- Are you asking for one of the grandsons or both?
- Who paid $86,000, and what did they receive for the $86,000? (For example, maybe a grandson who owned 1/3 in fee simple paid $86,000 to buy the grandmother’s 1/3 share, and became a 2/3 owner. But maybe something else happened. You need to be specific.
- what was the $447,000 of sales proceeds? Was that 1/3 the selling price, 2/3 the selling price, or the entire selling price?
- Who were the owners when the property was sold and in what exact proportions?
