1099 - S

[spanel]

UPDATED

Long Story.. here we go.

House was deeded over to 5 siblings in 1995 years ago. House sold for $100,000 in 2011. This house was their Dads house (he died in 2010).

Dad aquired house in 1990 (bought out 2 brothers at that time). House was giving to all brothers prior to that (god only known when) by thier mother.

UPDATED..

Found out that they sold the house for $100,000 to one of the 5 siblings... for cash and in lou of some property valued at $25,000.

YIKES!

Opinions please.

Thanks!

[taxmom34]

i would think finding Dad's basis would be what he paid to siblings and add improvements. then try to find Dad's basis when mother died or gifted. i don't think you need to go back to the great grandmother.

[taxea]

Basis for the boys would be FMV or basis of whomever transferred it to the boys at the time of of the transfer. God may not know the answer but surely the Deed would have recorded the date. If no deed was recorded in the boys names then the house was not transferred to them until the last surviving parent died. Have them check with the Bureau of Conveyance, the tax assessors office or the recorders office for documents that would answer this for them.

[Gary2]

Long Story.. here we go.

House was deeded over to 5 siblings, 15 years ago. House sold for $100,000 in 2011. This house was their Dads house that died in 2010.

Dad aquired house in 1990 (bought out 4 other brothers at that time). House was giving to all brothers prior to that (god only known when) by thier mother.

I can't reconcile these dates. First it was deeded to five siblings in 96 or 97. Then it was the dad's house in 2010 (or else it wasn't, making the dad's date of death irrelevant), but dad acquired it (or 4/5 of it) from four of his siblings in 1990. But it was given to dad and his four brothers at some earlier date.

From the parts that do make sense: 1/5 of dad's share is based on his mother's (current kids' grandmother) basis (assuming the tax law was the same at that time - a big assumption); 4/5 may or may not be based on what he paid his four brothers, depending on whether it was FMV.

If dad then deeded it over to five siblings in the next generation (acknowledging the confusing coincidence that there were five siblings in each of two consecutive generations), then they split dad's basis. Or maybe I'm misreading it, and there's only one generation with five siblings.

Suggestion: Give the years in chronological order, specifying "unknown year prior to ..." when necessary, and never mix "year 20xx" with "N years ago". Don't skip back and forth on the time line. And label each generation unambiguously whenever there's more than two.

[spanel]

ttt


chris

[Burke]

It appears from the information in the original post, that the house may have been deeded over to the 5 siblings in 1995, but that Dad still continued to reside in the house until he died in 2010, and the house was subsequently sold in 2011 after his death? If this is the case, he had a life estate interest in the home, whether stated in the deed or not -- better if it was, but it could be implied based on the circumstances -- and in that case the siblings got a stepped-up basis in the home at Dad's DOD (as long as none of them were living in it.) If it was not his personal residence when he died, then they assumed his basis, whatever that was.

[Kram BergGold]

Burke with a twist

My understanding is as long as Dad paid all the bills for the house you have a life estate or an implied life estate. In either case you step up the basis. However if the 5 siblings were paying the bills you do not have a life estate and you are stick witih cost plus improvements (gift basis).