In Sept 2000 a widowed mother sold her home to her 3 children for no cost. She executed a warranty deed and retained life estate. She lived there until Jan 2009 when she was admitted to a nursing home with Alzheimers and a stroke. In Jul 2009 the three children sold the home, and in Oct 2009, still in the nursing home, the mother died. Q: how do the three children report the sale proceeds (1/3 each) to IRS?