[Done2010]

We sold my deceased mother's home today for 85400 (closing fees at 15,000 + loan balance of 20150.00). She passed over 10 yrs ago. Willed to 4 children. One of my sibling lived in home until Jan 08 upon that siblings death we renovated house by obtaining a loan of 20000 (pd at closing). We incurred misc, utility, loan pmts, and lawyer fee in the amount of 15000.00. All remaining siblings live in NM. What are our tax consequences for this sale ?

[Done2010]

We sold my deceased mother's home today for 85400 (closing fees at 15,000 + loan balance of 20150.00). She passed over 10 yrs ago. Willed to 4 children. One of my sibling lived in home until Jan 08 upon that siblings death we renovated house by obtaining a loan of 20000 (pd at closing). We incurred misc, utility, loan pmts, and lawyer fee in the amount of 15000.00. All remaining siblings live in NM. What are our tax consequences for this sale ?

[AtlantaTaxExpert]

I assume the one sibling paid rent to the other three siblings, which was duly reported on Schedule E on each of the sibling's annual tax return?

If so, then the sale of the house is reported on Form 4797 on each sibling's tax return (to include the deceased sibling's last year normal tax return or the Form 1041 fiduciary return), with 25% of the house's basis and the sale proceeds reported on each respective tax return.

A relatively simple tax calculation for any competent tax professional; somewhat more challenging for a layman, but not impossible. The concept of splitting the costs and proceeds equally among the four siblings is grade school math.

[Done2010]

Deceased sibling did not work in years prior to his death (Jan 08). No rent ever collected or paid by that sibling. House remained vacant until today's sale. I guess my specific question is that all expense incurred will be deductable from proceeds of sale as long term capital gain

[ebaines]

Assuming that the sibling who died had willed his 1/4 portion to the surviving three siblings, then each of you owned a 1/3 interest in the house, and consequently each reports a sale of 1/3 of the property. Your sales proceeds are equal to the sales price minus direct costs of selling the property - meaning any sales commission you paid - divided by three. You do not subtract mortgage interest or other upkeep costs. Your individual cost basis is the sum of (a) 1/4 of the fair market value from the date of your mother's date, plus (b) 1/12 of the fair market value as of the date of your siblings death. Hope this helps.

[ScottGem]

Its not a good idea to piggyback your question on someone else's. This can lead to confusion. You should start a new thread. So I've moved your question to its own thread.