@mcw317 wrote:
I have been filing a Schedule E since 2012 but I don't know if the other three have done so.
As @Hal_Al mentioned, you need to determine your basis and the implied life estate (assuming a life estate was not retained in the deed), would give you the best result.
The problem with arguing that this is an implied life estate is that the life tenant has the right to rental income and, if you were collecting, reporting, and retaining the rental income, an implied life estate would be a tough sell.
Regardless, if you used a carryover basis for the purposes on depreciation deductions, your basis would be reduced by the amount of depreciation deductions taken. If you did not take depreciation deductions, when you should have done so, the matter becomes even more complicated. You really do need to consult with a local tax professional either way.
