Son 2 did not sell the house and it is not related to his return. This is not a sale of main home for the survivors. When son2 passed, his share of the house went to everyone left on the title. The three survivors have the original 25% basis- value from 2000 purchase plus improvements. Now, each has 1/3 of the Fair Market Value on date of death for 25% of the house.
Example:
Bought house in 2000 for $120,000- each has a basis of $30,000.
August 2021- house worth $300,000- 25% of it is $75,000 to be divided among the survivors at $25,000 each.
Each person has a basis of original plus inherited = $55,000
@airbus_jas
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