Hello - Okay, thank you. I am Mary. Trying to keep this simple. Joe and Peter are brothers. One brother is gifting his full share. I would be buying out the other brother, but only for a portion of his 1/3 share. Say the house is worth $450k. Instead of me buying him out for 1/3 x 450 = 150, he would only charge me 100. I think he would have to report a capital gains loss, offset by any capital gain on the FMV of the house that arose between the date of death (Jan 2021) and the date of sale (Aug 2023)?
The next big concern is my basis. The basis would be based on the FMV of the home at today's date since the date of death has passed. How would this be calculated? I may not live in it and sell it next summer, which may trigger a large capital gain which would not make sense.
