How do I figure taxes on sale of inherited home

[38Chevy454]

Well, yes and no. Some of the improvements were paid for with mother's life insurance and some were paid for by CPA sister, which unbeknownst to us, the other two siblings, our share has dwindled to about 24% each, while sister gets roughly 50%. Other things that contributed to the decline is nephew residing in the home, rent free and other expenses/services being charged to the LLC without our knowing or being kept updated whatsoever.

Reading the LLC agreement, sister should have been presenting us with the option of contributing to these improvements vs. losing share % of the home and also keeping us informed of the status.

In my opinion, it is best to just get out now. Brother is donating his shares to split between CPA sister and myself as he wants out as well.

Baed on your numbers, it seems that the improvements to the house are approx equal to 1/3 of the original basis. Example, if the house at time of death was worth $450K, then if your CPA sister added ion additional $150K, it would make her basis $300K, and each of other siblings at $150K each. That would approximate the spit percentage you have been provided. I think the big question is whether the nephew who has lived there was paying fair rent price (I suspect he is CPA's son and probably was getting a deal?), and if any rental profits were used to pay for improvements then the value of those improvements should be added equally to each person's cost basis. Not just the CPA sister's basis. What was CPA sister taking each year as her LLC fees? Was she fair to the other persons?


Lot of questions and it seems that your CPA sister is not providing a complete record of all the expenses and income. If you can get out and have some money, of which some portion will be long term cap gains it sounds like; then that may be best for all. Your CPA sister is a person that you are best not to be in business with it seems.