Inherited 50% of house a couple decades ago, and inherited the other half interest about 15 years ago. This is primary home. So have owned the whole house for 15 years. I know the appraised value for the first half, but an appraisal was not done for the second half, since it was not needed for the small estate with sole heir--just a title transfer.
As an example, the first half interest had a basis of about $40K and the second half interest would have likely had a basis of say $50K or so if an appraisal had been done at the time. Current value of whole house is about $110K. That would be a gain of about $20K if using fully-appraised basis from the 2 prior events.
I realize I could pay $200-300 to have it appraised retroactively, but since the gain would only be approx. $20K when fully appraised, is there any reason to do so? Even if I only used the first half value of $40K and ignored the second half basis, the gain would be $70K.
Since this is preliminary at the moment, I don't know if I will get a 1099-S or not. I'm hoping I can talk them into not submitting one. I don't think they have to give submit one for a primary home with these value amounts, do they?
In summary, is there any need to pay for a back appraisal? Am I likely to get a 1099-S?
Thanks.
