sale of inherited house

[taxmom34]

My mom died owning the house. House was sold and split with children.
The value to the children was the sales price. They did not report any income because
it would not have been income to my mother if she had sold the house when she was alive.

I had never heard of this rule, when was it implimented ? maybe i missed it somewhere along the way.

[MAJ]

The sky is falling..... RUN!

Too many changes to track... Nuts..

OK.. FMV at DOD. (Assume $200,000).
Let's assume sale was $210,000
The $200,000 is not taxable as they are Class A (her children)
they would split the tax on the $10k - $3,333 each.
So what's that $5-700 in tax.... I'll take the $70k and pay out $1,000 or less 10x a day!!

[taxea]

Too many changes to track... Nuts..

OK.. FMV at DOD. (Assume $200,000).
Let's assume sale was $210,000
The $200,000 is not taxable as they are Class A (her children)
they would split the tax on the $10k - $3,333 each.
So what's that $5-700 in tax.... I'll take the $70k and pay out $1,000 or less 10x a day!!

they each have a basis of 1/3 of the FMV at DOD...lets make it easier and say that amount is 300K. Basis of 100K to each child. Sale price 330K...1/3 of sale price to each. 1/3 of sales expense to each. Sales per child 110K less 1/3 of expense of sale=taxable capital gain.