I have a complicated situation and am looking for guidance.
My grandmother passed away in mid-2004. The ownership of her house/property in Oklahoma moved to her children (five children, so each got a 1/5th ownership). However one of those children (my mom) passed away in the 80's, so her share was actually split among my sister and me, each getting 1/10th ownership. I never lived in the house.
The home was finally sold in 2021. I moved to California 15 years ago (not sure if this affects matters). So I received 1/10th of the sale proceeds (less closing costs and other fees), and received a 1099-S from the realtor. The value on the 1099-S is the gross sale. I received about 10% less in net cash.
While working on my taxes and filling out the investment sale, it's asking for the basis value. From what I have read, the step-up basis is as of the date of death, which was in 2004. Since home values really have only appreciated since then, it looks like I have to pay capital gains tax.
How do I find out what the value was in 2004 of the house? Is there something specific I should get from the State Assessor's office? or something from the realtor that shows this? What would the IRS require of me to back this up? I found the "Market Value" on the assessor's website for 2004 and could get 10% of that value to use, but is that the correct method?
