Life estate proceeds

My wife's mother had a life estate on her home (deed was in my wife's name and her brother) and recently sold the home she was living in and moved into an apartment. She received a portion of the proceeds as did my wife and her brother. The three of them have received 1099S forms.

Mom was living in her primary home that got sold. For my wife and her brother it was not their primary home.

What do each of them have to do with the 1099S gross proceeds amount on this year's taxes? Does Mom have to do something different than my wife and her brother?

Thanks!

posted

it appears each will have to treat this differently

I am not an expert in this area but did find the link below from an attorney responding to a similar situation where the parent and children sold the home while the parent was still alive.

https://www.beliveaulaw.net/2011/06/if-a-living-person-has-a-life-estate-for-a-house-can-they-sell-t...