What is the name of your state (only U.S. law)? FL
In 1989 a widowed mother bought property and built a house. Cost was $39K. In 2000 she deeded it to her three adult children at no cost. Market value at that time was $82K. No gift tax was paid. She retained life estate. In Jan 2009 she entered a nursing home and in July 2009 the three children sold the property; her life estate was sold by one of the children acting through a 2007 power of attorney. Net sale price was $117K. She died Oct 2009.
How is capital gain figured for Schedule D? All children are equal split 1/3.
In 1989 a widowed mother bought property and built a house. Cost was $39K. In 2000 she deeded it to her three adult children at no cost. Market value at that time was $82K. No gift tax was paid. She retained life estate. In Jan 2009 she entered a nursing home and in July 2009 the three children sold the property; her life estate was sold by one of the children acting through a 2007 power of attorney. Net sale price was $117K. She died Oct 2009.
How is capital gain figured for Schedule D? All children are equal split 1/3.