I am trying to figure out how to calculate the cost basis on a property that was set up as a life estate. My mom was a remainderman in the life estate and passed away before the grantor of the life estate.
Here is the exact scenario:
My grandparents set up a life estate on their house with their children with the children being tenants in common and my grandparents maintaining a life interest in the property.
My mother (one of the remainderman) above passed away before my grandmother (life interest holder) passed away. I was the sole heir to my mother's interest in the property so I became the remainder owner of her share.
The last remaining original life interest owner(my grandmother) recently passed and we sold the property. I was wondering how my basis should be calculated for capital gains purposes since the remainderman that I inherited my share from passed away before the original grantor with life interest?