Our mother is still alive but unable to live alone. She deeded the property to we 4 children 3 years ago. We sold the property last week. How if any do we pay taxes. House sold i new york we live in alabama, ohio and maryland

When she gave you the property it was a gift, and so your tax cost basis is the same as your mother's cost basis, divided 4 ways. So now you must determine what her basis was, which is equal to her original purchase price plus the value of capital improvement she may have made to the home while she owned it. So your first order of business is to determine a figure for your cost basis. Once you have that - assuming that the market value of the house on the date she gifted it was at least equal to this cost basis, and also assuming that you sold house was sold at a gain over the cost basis, the 4 children will report the sale on their 1040 schedule D, with each showing their share of the proceeds and their share of the cost basis. Now, if in fact the market value of the property on the date of the gift was less than your mother's cost basis, or if you sold the house for less than your cost basis, the rules are a little different - post back if that's the case and we'll walk you through those details.