@Zdmajor wrote:
......I'm trying to figure out the best approach for splitting the proceeds with my sister so that I only pay taxes on my portion.
You should most likely consult with a tax professional and an attorney in your locale.
Since you are the only one on the deed (title), splitting the proceeds with your sister would be considered a gift and there is an annual exclusion of $15,000 before you would be required to file a gift tax return (although you would likely not owe any gift tax).
Further, since your grandmother deeded the property to you prior to her death, you might not get a stepped up basis (fair market value on the date of her death) unless you can show that there was an intention by her to retain a life estate and for you to be the remainderman.
Seek legal and tax counsel.
