Capital Gains Tax

I live in Pennsylvania. My father deeded his house to me in April, 2000. He passed away March, 2002. He lived in the home up to the time of his death. His wishes were for me to sell the house and divide the money between my six siblings and me. Will I have to pay capital gains on the sell of the house? The approx. value of the house is 50,000. Thank you for any help you can give me.

If he delivered the deed to you in April 2000, and there were no conditions to your ownership, then the gift of the house was made at that time. In that case, ff the fair market value of the property was greater than your father’s adjusted basis, your basis is your father's adjusted basis at the time you received the gift (basically that would be the cost of the home to your father plus the cost of any improvements he made to it.) In this case, you personally would have a taxable capital gain from the sale of the property equal to the excess of the sales price over your basis.

When you distribute the $50,000 to your six siblings, there would be no gift tax because each of them would be getting less than the $11,000 annual exclusion.