I have a question regarding Capital Gains taxes. My parents changed the deed to their house in 2005. Adding myself and 2 other siblings on the deed I believe this is considered a gift. . My parents passed in Late December of 2017. We are in the process of selling the house. My understanding is that Capital Gains will need to be paid for the Fair Market Value in 2005 against the sale price. Based on Tax reciords the property Value in 2005 was $450,000, we sold the house for $900,00, so we owe Capital Gains on the $450,000. And since the proceeds will be divided by 3 than we each owe Capital Gains taxes on $150,000 each.Am I under the right assumption? As a follow up question, If I use my proceeds from the sale $300,000 to pay off my primary resident Mortgage off, do I still owe the capital gains tax? I can pay off my present mortgage which is $2000,000. Thank you for your response
