@ceenvee703 wrote:
My mother passed away and we sold her house. 11 years prior to the sale, she transferred the title to me and my sister, so it counts as the sale of a second house. We did not pay anything at that time. She did not pay rent to us.
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To calculate the amount of capital gains from the sale of the house, I would take the basis of my mother's house (the price she bought it for in 2009
Did she continue to live there and pay all expenses? If so, it seems likely that there is an implied "Life Estate". If that is the case, then the Basis is the Fair Market Value on the date of her death.
You may want to consult a tax professional and/or Estate attorney about the potential Life Estate.
