1099-S

[melodynjh]

Looking for direction - 

My FIL passed away 3 years ago.  He resided in a home with his brother that was family-owned for many years.  Originally, it was their mother's home, but they inherited it from her.  So technically, the home was owned by FIL and his brother.  FIL passed away.  His brother continued to remain in the home for two more years.  Last year he sold the home.  This resulted in my husband and two siblings in receiving half of the profit from the sale of the home through escrow at the close of the sale.  We received a 1099-S for our share of that.  How would this be reported?  Since we never owned it, there is no "date of acquire".  The amount is just over $40k.

[Mike9241]

we are missing too much information to give you an answer. it could be a reportable transaction or a gift.

did FIL have a will or trust document? if so what did it provide concerning who inherits his interest in the house?  Family-owned is indefinite. whose name was on the title when FIL died and how was it titled after he died?

[melodynjh]

Thank you for your response. There was no will or trust. FIL and his brother were on the title. Title didn’t change when he died until his brother sold it. Through escrow the half the FIL owned was split between FIL 3 kids, which would be why we got the 1099-S. Does this make it a gift? If so, how would that be documented through TurboTax even already being given the 1099-S? 

[JohnB5677]

This transaction is in stages, but the portion you are concerned with is the value of the home when your FIL passed.

You will have to get a realtor or property evaluator to determine the value of the home on the date of your FIL's passing.

You will use this value as the basis when determining your capital gain.  That will be half of the home, split 3 ways.

That will cover your FIL's half of the home.

Your FIL's brother will have to go back to the dates the mother passed to get the property value.

Please contact us again with any questions, and provide some additional details.