Tax implications on quick claim deed

[paulgiovanini]

My brother, sister and I received a quick claim deed from our parents for their house and 2 additional lots in 1999. My parents lived in the house under a life estate until 2006 when our mother was the last to pass away. We have just sold the house and the 2 additional lots (2008) and would like to know the federal income tax implications. My parents were given the house by my mother's mother in 1945 and my parents lived in the house all those years. We sold the house and lots for a combined price of $425,000.

 

[seniorjudge]

By the way, it's quit claim deed.

Stand by for tax experts, but I don't think it matters what kind of deed it is (at least for tax purposes).

 

[tranquility]

You will pay capital gains on the amount realised less your basis. Your basis will be very low (amount paid in 1945) unless substantial improvements have been made.