Sale of Inherited Home

[SCPM]

My mother in law passed away in August of 2024.  No improvements were done to the house.  It was sold as-is in December of 2024.  The proceeds were divided by the 5 adult children including my husband.  The title company did do a 1099-S provided at closing.  I verified with her that we do have to report this on our taxes.  I upgraded to Turbo Tax Premier from the Deluxe product in order to be able to have access to input the information.  The problem that I am having is figuring out the cost basis.  No appraisal was done at the time of her death.  The home sold for $400000.00.  The buyers of the home did get an appraisal done as required by the mortgage company that they used.  We were not provided a copy of the appraisal.  We contacted the realtor yesterday to see if he had access to the appraisal.  He said that he did not, as it belongs to the buyer.  I have read that I cannot use the tax assessment for the year of 2024 as the cost basis.  I am at a total loss as to how to get the cost basis.  We live in Tennessee, and have no state income taxes.  Also, would the cost basis be divided by 5 just like the proceeds as reported on the 1099-S were divided by 5?  Any help would be greatly appreciated!!  

[Opus 17]

Yes, you will divide the cost basis 5 ways and the proceeds 5 ways.

You need a reasonable method of determining the FMV that the IRS will believe if audited.  The best thing to do would be to contact an appraiser.  They may be able to do a retroactive appraisal based on historical records and the photos from the real estate listing.  If the market was stable between August and December, the selling price may also be a good indicator of FMV, but if there were dramatic price changes in the market, there might need to be an adjustment.  An appraiser can give you advice on that even if they don't do a formal appraisal.   

[SCPM]

Thank you for your help!!