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The sons would need to explain if the deed property was an outright change of ownership to them (as a gift) or was the deed in relation to a life estate.
If the parent's deeded the property out right to the sons then they count as their basis the cost (plus improvements) of the parents. Their capital gain would be the difference in basis and sale (split between them).
If life estate, they would receive step up in basis to value on date that their father passed away. This could mean no gain (perhaps slight loss due to cost of sale).
It comes down to how the property transfer was actually stated.
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