TaxGuyBill
Level 15
12-06-2019
11:02 PM
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The short answer is to use the father's Basis (well, divided by two for each sibling) and report it on Schedule D/Form 8949.
The longer answer is that when the Life Estate was formed in 2010, the kids received PART of it (gift) and the father kept PART of it. When the Life Estate was removed, the father gifted the rest of his ownership (and the rest of his Basis) to the kids (and the father should have filed a Gift Tax return at that time).
The longer answer is that when the Life Estate was formed in 2010, the kids received PART of it (gift) and the father kept PART of it. When the Life Estate was removed, the father gifted the rest of his ownership (and the rest of his Basis) to the kids (and the father should have filed a Gift Tax return at that time).
