Cost Basis for a second home inherited.

[Rick W1]

My father passed away in 2017. He had signed a Quit Claim Deed conveying a life estate of his home and it's property to the women he was living with for several years. She passed away in July of 2020. The Termination of Decedent's Interest transferred the property back to my family later in July 2020. The property was sold in September 2020. The proceeds was split 3 ways. I have a 1099-S for my portion.  What is the proper way or to determine the cost basis? (2017 or 2020)

[tagteam]

With respect to life estates, the remaindermen's basis would be the fair market value on the date of death of the last life tenant to die (in this case, July of 2020).

[Rick W1]

Thank you.