Question

Brothers sold deceased parents' home with life estate

Forum|Forum|5 years ago
February 4, 2021
1 reply
0 views

My mother passed away in 2020. When my father was alive they set up a "life estate" deed to me and my brother for one dollar in the late 1980s. Our father passed away in the 1990s. My brother and I sold the home approximately 3.5 months after our mother passed away. We both received form 1099-s documents showing the gross proceeds. My form shows my half of the sales price and his the other half. Where do I enter this information into TurboTax Premier? Also, how do we determine any taxes on the sale?

M-MTax

With an LE deed you and your brother get the fair market value on your mother's passing as your basis. If you sold only 3.5 months later at FMV or close to it you probably have $0 gain. You have to report the sale which in TT is the investment section.