Blog
03 October 2009
I was not aware at the time, however in 1990 my uncle transferred title of his home to my sister and me. The deed states consideration of $1. My sister has power of attorney with regard to my uncle (now in assisted living). The property was sold in May 2008 for $23,900, of which I received net $11047.63. It was during this event that I learned I was a 50% owner and I had to sign / authorize the sale. My sister received a 1099-S from the attorney (both our names and SS#). My question is about HOW to file this. I do my own taxes using Turbo Tax, but I feel challenged by this situation. Should this be filed on Form 4797…or do I include it on Schedule D? How do I establish a basis? Is it $.50 (50% of the the $1 value on the deed in 1990). Does that make the full amount a taxable gain? Or should I try to estimate an adjusted basis for 1990. I don’t know the Fair Market Value of the property in 1990, but I’m sure I could find historical info to establish it. I wrote to the IRS, but their reply left me confused so I’m hoping some expert can offer helpful direction. thanks!