1. I was gifted land from my Grandmother to use for her care expenses. (No, she doesn't qualify as a dependent.)
2. Rather than sell the land as a whole, I paid contractors to develop it so that I could sell the lots.
3. I received multiple 1099-S forms for those sales.
4. I know I can deduct medical expenses paid for my Grandmother even though she is not a dependent but are there any exceptions to property being sold to pay for nursing home expenses?
5. Do I report the 1099-S forms as capital gain minus her cost basis and complete a Schedule C to deduct the development costs? Or do I add development costs to her cost basis to adjust the gain? **The property was in my name for 11 months. (from gift date to development sale date)
**Tax year 2014
