- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Deductions & credits
You probably need legal help.
I'm not a lawyer, but my understanding of "life estate" is that the cost basis steps up to the fair market value (FMV) on the date of death* of the person with the life estate (your grandmother) , even though you may have acquired the title (or partial title) to the property earlier by gift or inheritance.
However, "my grandmother passed away just a few years ago", indicates that there may have been some increase in value, that could result in a capital. But it will be a long term capital gain (all inheritances are long term, regardless of the time you actually owned it.). But, if you "have no job right now", the first $39,000 of long term capital gains are taxed at 0%**, the rest at 15%. So, there will actually be little or no tax on the sale.
*References:
http://www.law.cornell.edu/cfr/text/26/20.2036-1
**Depending on your other income and dependent status