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Hello, I'm Robin. Welcome to JustAnswer. I'm reviewing your question now and typing up my reply. I'll post that in just a few moments.
If your father left you his house and you sold it then you would be required to report the sale but you would only pay tax on the gain. Gain is the difference in COST and Sale price (less costs to sale).
Because you were left the house (inherited it) your cost is the Fair Market Value of the house on the date your father passed away. You may not have any gain but you still have to report the sale.
If you give away $14000 to each of your siblings you still have to show all the sale on your own return and the gifts do not change that.
Please let me know if you need clarification. If you do not then a positive 5 star rating is appreciated so I get credit for the response. (look for the STARS or SMILEY FACES)
Your gift counts in the year you make the gift but it does not matter for your tax filing because you are not required to report the gift and it does not change your tax situation.
You can give it before or after because it has no relevance at all for your taxes as long as you give them each only $14000 or less.
You would pay tax on the $170,000.
The gifts are not deductible in any way. You will pay the full tax (if there is any) because you owned the house and you sold the house.
Did that clarify?
Please make sure you know how to calculate the true gain because you only pay tax if there is a gain.
I wanted to check back and see if you needed further clarification.