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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 13313
Experience:  15years with H & R Block. Divisional leader, Instructor
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My mother put her home in all the children s names (6) 12

Customer Question

My mother put her home in all the children s names (6) 12 years ago. The house sold last week for 260,000.00 and all of us have a w-9 for 43,333.33. How are the capital gains calculated. Is it from the value of the home when it was put in our names? If so how do we get what the value was 12 years ago. What deductions can we use and how do we divide them for our own personal return?
Submitted: 1 year ago.
Category: Tax
Expert:  Robin D. replied 1 year ago.

Hello,

As your mother made a gift of the property when you all were placed as owners, your cost is the same as her cost plus improvements. Had you inherited after her passing, you would have received a step up in cost on the day she passed away.
You each report 1/6 of the cost (your mother's basis plus improvements she made or you made after ownership changed).
How your mother acquired is important. If she inherited (even half) her cost (basis) would be the value when that person passed away.
Gain is the difference in basis and sale (less cost to sale).

How did your mother acquire the property?

Expert:  Robin D. replied 1 year ago.

If you can answer my question, I can advise further.

It is very important to know how your mother acquired the house so you each will know how to report the sell.
Expert:  Robin D. replied 1 year ago.
Did your mother inherit the property or all by herself purchase the house?