Prior to my Aunts death in 2000 she put her home in her daughters (my cousin) and two grandsons names. She wanted to be sure they had a roof over there heads. My cousin is the only one who has been living there. She sold the house and all the proceeds went to her. The two boys didn't want any cash out of the sale. All three of them had to sign at closing. She is the only one to receive a check at closing for $178,500 but on the stub it showed all three of them with equal distributions totaling the $178,500. What are the federal tax implications for this transaction. It was a simple deed.
