I jointly inherited property w/ 2 sisters, The FMV at the time of death was $115k & the property is being sold for $120k so how are the capital gains calculated/divided?

[guilfordb]

Myself and 2 sisters inherited property from my father. The FMV at the time at the time of death was $115k and it is being souls for $120k. Would I report the capital gains in 3rds? So 1:3 of 115 and a 3rd of 120?

[Coleen3 · Accepted solution]

You would divide everything into thirds, the basis (FMV at time of death), sales price and costs of sale, assuming you did not get a 1099-S with the full value in anyone's name. If you did, you would have to adjust the basis to prevent one person having the full gain.