I suppose that technically, your parent gave you 1/2 (or 1/3) of the home, that would require the parent to file a gift tax return if the value was more than $15,000 at the time. And technically, you are now giving that 1/3 or 1/2 back to the parent, so you need to file a gift tax return. Gift tax returns are not supported by Turbotax, you have to do it yourself or see a pro and file it separately from your normal tax return. But gift tax is not actually owed unless your lifetime total of gifts is more than about $14 million.
I wonder if there is a case to be made to just ignore the whole thing. @rjs @AmeliesUncle ??
In any case, if your parents did this thinking about estate planning and probate, you should all go and see a real estate planner instead of trying to do it yourself. There are a lot of advantages to seeing a pro and doing it right.
