Wow! @jtax This is such a thorough answer. Thank you! My father bought the land in the 60s, then had this house built in the early 70s, and my mother has lived there since, so that should be good as far as the capital gains rates you mentioned. So it sounds like I don't have to personally own it for over 1 year to benefit from lower capital gain taxes, as long as she has owned it and lived in it for at least that long, which helps! My dad passed away over 20 years ago and my mom, sibling and I all inherited it (as well as other properties) at that time. My mom inherited 50% and all us 4 kids have the other 50% as 12.5% each, so I guess I've technically owned that 12.5% of that property for a long time, but not all of it. It's a pretty complex situation and we have an expert in Italy working on it too, and after this "redistribution", sort of exchanging of quotes with my siblings, all I will get of all properties originally inherited from my dad is just the apartment my mom will be gifting me (which is one of a 3 story house). As far as knowing how much that portion of the house cost to build and renovate over the years it might be a bit challenging, as I am not quite sure that some of the original documentation even exists anymore.
