Home in FL. Father died, left home to his son and daughter (50-50). They are the remaindermen. Step mother was left with life interest.
Step mother lived in home 4 years, then had to move on to assisted living facility and eventually nursing home. Rents, of course went to help step mom. Stepmom died. Renters immediately left.
House cleaned up and sold within three months.
Question 1: What is the basis of the home for the son and daughter? Is it the value of the house on the date of their father's death, or does the life estate to the step mother matter? Question 2: If we have to do an actuarial calculation, then the step mother was 72 when the father died. So, IRS tables say step mom's life estate was worth 57%, while remainderman's share was 43%. Given this information, is the basis of the home its FMV times .43????? Question 3: Does it matter that the home was a rental for the last years of the step mom's life? Question 4: We, the son and daughter have no idea whether the step mom depreciated the property, or at what rate. Hope we don't need this data. If we do, how to get it?
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