1 No with full answer below.
2. POD means the money just passes on to you. There is no reporting the money.
You were deeded the property, perhaps your sister was a beneficiary. The two are treated completely differently. For tax purposes, when you inherit property, you get the value when the person died as the cost basis. When you are given property, you take the cost basis of the person who gave it to you.
This means for you, the cost basis is half of the 40k she paid for the property plus half the cost of any capital improvements. Repairs do not count since that is normal upkeep. Your cost basis is around $20k. You can deduct your half of any commission paid to sell the house.
For the sale, there should have been a 1099-S sent to each owner showing their share of income. If not, you can contact the issuer. If you owned half of the property, you should only have half of the sale as income. Sale half of $144k or $72k. The fact that any other owners decided to give your kids money above that leads into the gift area.
In 2024, you can gift up to $18,000 per person. I imagine your sister and whoever else are not going over the gifting limits. If so, they will need to file a gift return. It is of no consequence to you.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
