No, it is not an inheritance if the deed was transferred prior to their death, it would be considered a gift. You have a gain on this sale, so your basis in the house would be the same as your parents since the house was bought for $200,000 and sold for $223,000. If you had a loss, then you would have used the FMV at the time of the gift transfer.
Since the profit was split in half, the basis would also be split in half. So on your return, you would report $100k as your basis and $111,500 as your selling price. Then if there were any selling expenses you would divide them as well.
There is no special reporting for you on the gift other than the sale. You will report the sale by selecting the following:
- Federal
- Income
- Show More next to Investment Income
- Start next to Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B)
- Select Other
- Continue through and select Other again for the type of investment
- Answer how you obtained the house (gift)
- You will need to enter the selling price, dates and the cost basis of the items
Yes, you will need to file a NY non-resident return to report the sale of the house. If taxes were withheld, this again would be split reporting on your returns.
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