Thank you for your quick response. Just to clarify, the status of ownership was in a trust, and we 3 shared it equally until the house sold in 2020. Ownership was not passed to my sister. She simply moved in and lived there for 3.5 years. It sounds like there would be a $36,000 gain to pay in taxes. Where as the original purchase price was $219,000 (in 2006), which is more than what it ultimately sold for (in 2020). Am I understanding this correctly?
