In 2016 my Mom passed, and my 2 sisters and I inherited the house. Mom bought it in 2006 for 219,000. We do not have a written appraisal at her time of passing, but in 2016 it was worth about 176,000, supplied by realtor comps. My sister moved in later that year, and she moved out in February 2020. She lived there for 3.5 years. We sold the house in April 2020, for $230,000. The net profits, after closing costs, real estate commission costs, was $212,000. I have read about "stepped up basis" costs, regarding value at passing and value at selling time, and how that works. But what I can not find is our scenario where the house actually sold for less than its original purchase price in 2006. Can anyone tell us how this will work with capitol loss/gains? We did not pay for any improvements in the property from 2016-2020. But there were improvements made from 2006 to 2016. Thank you!
