<prompt> Human: My two siblings and myself have inherited my grandparents home after their death. Its in bad condition so were going to renovate and sell. My question is how we go about taxes come 2018. All of the renovation expenses, capital gains, etc, will all need to be partitioned correctly. Any ideas for how to go about this? Im sure Im about to get a bunch of see an accountant comments but any other input is appreciated!Assistant: First of all, go ahead and get it appraised right now, as-is. This is your joint basis in the house. Add however much the renovation costs to this basis, giving you your new adjusted basis. When the house sells, you and your siblings will need to pay capital gains on the difference between the selling price and the adjusted basis.So, assuming you all own this property equally 13 each, the easiest way to do everything is for each of you to pay 13 of the renovation costs. If you do this, then each of you gets 13 of the capital gains. Otherwise, each of you will need to keep track of how much of the renovations you personally pay for, in order to track your share of the capital gains:Your capital gains 13 of the selling price - 13 of the original basis how much you spent on renovations.Make sure you get a firm idea of what the house could sell for, once renovated, and that all three of you agree on what needs to be done. Dont waste your time by spending 25K to make the house worth 26K more. Also, if you have radically different ideas of what level of renovation is necessary, it can make things very awkward for the three of you. If you are not all on the same page, you should consider either selling it as-is, or letting one of you buy the other two out, so they can do the renovations on their own.Human: The house was actually appraised a few months before their death. Do you still feel getting it appraised is worthwhile or is using that value from the most recent acceptable?That makes sense to have everyone divvy the rehab costs up. I dont know why I almost over-complicated it. I do home renovation for a living so Im not worried about the profitability of the project, it was just the first time Ive been involved in a multiple owner situation. Thank you for your input!  <response>: I do home renovation for a livingI think its important that you and your siblings have an understanding about your role here. What would be unfair is for them to expect you to do a bunch of labor free, or at cost, to improve the sellability for all of you. This is not fair to you because theres an opportunity cost associated with you working on this house instead of on other projects.Sometimes people get a little myopic about this and dont see it as clearly as they should. They may think, were family; of course hell give us a discount or If Grandma were alive, hed have fixed that railing for free, so why should we pay him for it? If you have any sense your siblings might not have the right perspective on this, you might be wise to hire out any repairs. That means you all have a set cost to pay 13 of. What your siblings still gain is a knowledgeable judge of what repairs are worth it and whether the work is quality. That is no small thing. 