@ljet1015 wrote:
We put a ton of work into it and ended up selling for 20k more than it was worth when we got it.
You may not qualify for the Section 121 (home sale) exclusion but you can certainly add any and all improvements made to your basis (which is the fair market value on the date of death of your grandmother).
Are you certain you still have a $20k gain after adding the cost of improvements to your basis?
