I inherited my mom's old house in April 2020, along with my siblings. My interest in the home was one third, and my 1099-S reflects this one third interest. I'm assuming I should report only 1/3 of the selling expenses from the closing statement for the sale of the house, and I should also only report 1/3 of the cost basis. Correct?
Also, there was no appraisal done on the home at the time of my mom's passing. However, a realtor did a comparative market analysis (CMA) on the home approximately 8 and 1/2 months after her passing, prior to listing it for sale, in order to determine its fair market value (FMV). The CMA was requested by our probate attorney to justify the listing price to the probate court. Can I use the value (1/3 of total) on this CMA as my cost basis, even though it was done 8 and 1/2 months, instead of 6 months, after my mom's passing? In the event of an audit, will the IRS reject the FMV in the CMA because of this?
