Seeking advice on how to properly report/file pertaining to sale of Life Estate Home. I see otheres with similar questions but not quite same situation. Have called 6 CPA's seeking help but they are all too busy. I see many professionals on here are knowledgable and hoping they can assist us in this.......
Here are the details;
Parents purchased home in 1994 for $162,500
One parent died in 2016...
Son and daughter in law moved in and new deed filed stating $100.00 purchase price reserving Life Estate for remaining parent in 2017...
All in agreement sold home and moved in 2023...
Son and Daughter in law each received form 1099-S splitting the sales price between the 2 of them...
Assuming this to be entered under "Sale of home" as it was primary home for tenant, son and daughter in law since 2017.
No capital Improvements were made only minor updates, repairs and maintenance.
If this is to be reported under sale of home, which date should be used for "date bought or acquired"? the date parents purchased the home in 1994 or the date the Life Estate Deed was filed in 2017?
If 2017, how is the cost basis calculated?
Thank you in advance for expert guidance.........
