Hello! I am a CPA here to assist you with your tax questions. My goal is to provide you with excellent service today.
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I'm sorry to hear about your loss.
Your basis in the home is the same as your parents basis at the time of transfer.
You will pay tax on the proceeds to the extent that they exceed the basis
So, if you sell the house for $100,000 and the basis is $80,000 then you will each share tax on $20,000
To share with the other sibling you could either put them on the deed, or you could simply gift them the funds once you sell the house.
To put them on the deed you would simply do a quitclaim deed
Your basis in the house is increased by any capital improvements you make. So, if you remodeled or added a roof or had expenses like that, that will increase your initial basis. Your initial basis is what your parents paid for the house.
Regular maintenance does not add to the basis
Would property taxes and utility bills add into the expense?
No those do not add to the basis
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