@Zdmajor wrote:
My grandmother quit claimed her home to me before she died. My name is the only one on the deed. I sold the house, and 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.
If you owned the house alone, then only you report the entire sale and pay all the tax. If you give money to your sister later, that is a gift.
How you report the sale, and how much tax you owe, is complicated in your situation (as indicated by the other discussion) and you should have the deed and other documents reviewed by an attorney or tax professional. They can also advise you on a fair amount to pay your sister after you pay the taxes.
Your grandmother may have stuck you with a major tax bill if she really quitclaimed the house to you in fee simple before she died. You will need records of what she paid for the house and any improvements that you can prove the cost for. Professional help is strongly advised.
