Capital Gains and Losses
Capital Gains Tax Questions? Ask a Tax Advisor for Answers ASAP
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Proceeds from 1099S will go on Schedule D. The purchase day will be day of inheritance, date of sale will be the sales date and your basis will be fair market value of the property on the day you father's death + divided by 3 + 1/3 of selling expenses (each of you will claim 1/3 of the fair market value and selling expenses). If none of you used the property for personal purposes after you father passed away, you may claim a loss, otherwise the loss will not be allowed.
Ok. So you will not be able to claim losses. The RE agent who sold the the house can do market analyses for your and give your fair market value at the time of your father's death. It is called comparable sales analyses. She will research comparable properties sold at that time in that area and tell your for how much your father's house would most likely sell back than. You use it as fair market value.
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