In may of '03, my father quit claimed his home to his 4 kids, on the tax rolls it was valued at 75k. In July of 09 he moved to a nursing home and we started to clean and fix for a sale which happened in May of 2010 @ 120k. Each child received a check for 29,679.00 after fees.How do we figure the capital gains taxes?
Thank you,
SA

This isn't inherited real estate - it was gifted to you in 2003. As a gift, each child's share of the cost basis is equal to 1/4 of the cost basis that your father originally had - which would be his original purchase price plus the cost of capital improvements he made over the years (this assumes that the fair market value of the property in 2003 was higher than his cost basis - if this is not the case, it gets a little complicated so post back with the details). Each child's share of capital gain on the sale of the house is therefore $29,676 minus 1/4 of the cost basis.