@Drkbest wrote:
Thank you so much for your response.
There was no life estate, just my brother, myself, and my step mother and my dad on the deed.
However, he was living in her home when he died. The home was just sitting there deteriorating.
Nonetheless, it sold for $315000.
My assumption is my brother and i have a cost basis from 1968, though he added us in 2013. we have added up all permanent upgrades to reduce the tax burden.
There's no reason not to claim the highest basis you can prove. If your father co-owned the property with his wife, and she passed before he did, that also raises your cost basis, because all three remaining owners would have gotten a partial stepped up basis when she died.
You should really see an accountant. The difference between the weakest position (each brother's basis is 1/4 of $21,400) and your strongest position (each brother's basis is half of $315,000) represents a tax savings of as much as $22,000.
