The issue is that the father never filed (as far as it is known, he has passed away about 7 years ago) a 709 gift tax return. Each child (3 of them) will be selling for a gross cost of approx $100,000 each.  Is this going to open up a can of worms with the IRS if it is put down as gifted?  Side note, the father inherited it from his mother 15 years ago just before he gifted it to his 3 children, so I assume the cost basis will be the FMV on the mothers/grandmother's date of death?  The other caveat is that the Deed of Distribution by the father was prepared and notarized and given to the county about 7 years ago but it was never recorded (for whatever reason) into the children's names.  They are in the process of doing that now.  The property has been sitting empty all these years but the property taxes have been paid.  What a mess!