Taxes on sale of deceased sister's home?

Unless you inherited the property in 2010 (and even then, it's probably these rules), your starting point for basis is the date of death value. Then you add improvements and subtract the real estate commission. If there is STILL a gain, it will depend on how you used the property.

Note, you use "inherited" as the date acquired and it's almost always long term (again a 2010 issue only).

1. Year she died.

2. Year sold.

3. Use between death and date of sale. Rental or business use will change this answer.

4. Amount of value on date of death.

5. Amount of improvements.

Possibly.

Take the proceeds from the sale the home, and subtract:

The value of the home on the date of death

The cost of the improvements made to the home (can t count your own labor)

The cost of the sale (such as realtor commission)

If the result is positve, you have a capital gain. Since you acquired the home through inheritance, the gain is long-term.

If the result is negative, you have a capital loss.

you four inherited the house, so you equally own it and would equally pay for any profit from the sale

if you alone made the improvements that merely means your amount of profit is less if these things that can be claimed which would be things you did within 90 days of sale

You do if you had a profit. The basis (Cost in plain English) is what the house was worth when your sister died.

Yes.

If you made a profit, yes.