@lfreitas21 wrote:
My dad took ownership of the home a few years ago and it was "gifted" and transferred to his name from his mom.
Well that's a new complication that you haven't mentioned before. It might make a huge difference, or no difference at all, depending on the answers to some of the other questions that haven't been resolved yet.
You will have to get an appraisal. The property tax valuation means nothing, and cannot be used for income tax reporting. But the as-of date of the appraisal that you need will depend on some of the unanswered questions.
Before you close the sale, get together with a lawyer and clarify who are the actual owners of the house who are selling it. If possible, arrange to have the proceeds of the sale paid separately to you and your sister, so you don't end up with one of you having to pay all the tax and gift a large amount of money to the other.
