[mamasun2003]

Wanting to know how much tax I will have to pay. My mother just recently passed away before she died she put my sister and I on her deed to her house. We have just sold this house and I want to know how much taxes I will have to pay the house sold for 50,000 we will split what is left after the real estate people are done.

[ebaines]

Since your mother put you on the deed before she died, the house is considered to be a gift to you and your sister. You owe no tax on that gift, and unless your mother's estate was pretty big (> $2M) her estate owes nothing either. But since it's a gift, now that you've sold it your cost basis is the same as her cost basis was. That would be her original purchase price plus the cost of any capital improvements or repairs she made. You and your sister together will owe capital gains on the difference between the sales price and your cost basis, less the cost of the sale. So, do you know what your mother's cost basis was?