Thank you so much, Diane!! This is very useful information.
For my mother's taxes, I think I understand that half her basis is market value, the other half would be based on cost plus improvements minus depreciation. If we use the "easiest and logical method" (which I'm all for doing), then this would be her basis on her taxes. But what do my sister and I do then? Do we report the same sale/cost basis (without the market value step up?) and then deduct 75%, or do we not report it at all given that my mother is reporting it? If that is the case, how do I file my MD tax since funds were withheld? Or do I report it and say that 100% of the proceeds was my mothers? I think I may be confusing myself.
The same applies to my parents' primary residence - we were all on the deed prior to my father's passing.
I assume that both do not count as gifts/inheritance then.
Again, really appreciate the help!
