MFJ Taxpayer purchased their daughters home in January 2023.  Daughter was in the midst of a divorce at the time and ultimately divorced later in 2023.  My clients paid off the mortgage of (round numbers) $122,000.  My clients also paid the ex-husband $65,000 to purchase his portion of the FMV of the home.  FMV is in the $300,000 range.  Clients total "purchase price" was $187,000 ($122,000+ $65,000).  

Clients then rented the home to their daughter.  Formal rental agreement and the monthly rental is at market price.  

First time I've run into a situation like this.  Am I able to use $187,000 as the purchase price, given $65,000 of that was paid to the ex?  Tax records show a 70/30 split Improvement Value / Land.  

Appreciate all thoughts and suggestions on this.