When my mother passed away my Dad had me remove her from the deed (2008) and add me to the deed. The thought being I could sell the house when he passed away not thinking of the tax consequences. Well He passed away (2023) and I sold the house to my nephew and the proceeds to be split between the siblings. I figured its inheritance and no tax consequences. Well a 1099-s was generated for the sale in my name. We had the house appraised when he passed away. Do I have to pay capital gains on the sale? Would the starting value of the home be when I was added to the deed in 2008 or value at time of death 2023? Since we sold to a family member for less than appraisal value would that be a lost if stepped up value to 2023?
Now the splitting of the profits. I figured I would just write a check to my brother and sister for their share but would that amount now be consider a gift and subject to the gift tax since the amount is over $17,000. Is there any way around the gift tax. I'm sure I can write a check to their spouses but still over $34,000. Can I just give them some cash over the year, or zelle. I just don't want to get stuck paying the capital gain tax and gift tax since my name was on the deed. Thanks for any help
