CPA QUESTION IN REGARDS TO SELLING A HOME PART OF AN ESTATE

[Craig Tomlinson]

Hello all, 

I had a quick question and was curious to see what you all think. My grandmother recently passed away and left her home to be split between both her husband and her son 50/50. The son wants his money out of the home now and my grandfather has agreed to sell the home. My grandfather and his son have stated that they are working on having title transferred to both of their names (details of this unknown but I would assume they will be taking title as joint tenants). My question is, once title is transferred into their names and the home is sold with proceeds split 50/50 between the two, how will they be taxed on the proceeds from the home. My grandfather has lived in the home with my late grandmother for the past 30 years and is still currently living there but never held title to the home, so I'm not sure if that makes any difference in regards to how he will be taxed on the proceeds in comparison with his son whom has NOT lived in the home for 2 of the last 5 years. Thank you in advance. Any feedback is appreciated! Hope you all have a great day!