Sorry, I was not very clear in my post. We sold the house for $84,000. My SIL owned 1/2 and my husband and I owned the other half, so we each got a check for $42,000. $84,000 minus purchase price and improvements is $42,000 gains divided by 2 so each need to pay capital gains on $21,000.
Sorry, it is confusing! Miss Prim
Edited to say, sorry, Total basis is $42,000 which would be purchase price plus improvements.
PS. I need to take a nap! I have edited the numbers 3 times!