I am a little at a loss. A couple years before my mother-in-law passed away she signed her house over to my wife and her sister via a quitclaim deed.
After she passed we sold the house for $80,000. The money was used to pay off the mortgage, some other funeral expenses, and sent $15,000 to other family members. All the money was dispersed at the closing of the house. My wife and her sister each ended up with about $20,000.
How do we go about claiming this income? Since there was a quitclaim deed I guess we technically owned the house for a few years prior to its sale. How does that affect our tax and what is the basis? Is the basis the selling price(fair market value) or something else? How much does each sister claim for gains?
Sorry it this is a jumble of questions I am just trying to get this straightened out before tax is due.