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emc011075, Master Tax Adviser
Category: Capital Gains and Losses
Satisfied Customers: 2189
Experience:  Master Tax Adviser and Enrolled Agent
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Live in New York - sold my Father home and divided among the

Customer Question

Live in New York - sold my Father home and divided among the three children the monies received from the home per my father's Will. At the closing we received a 1099S form. Now I am doing my income tax and don't know where I should declare the $147,000 received from sale which is my inheritance. Do I need to declare this money? If yes, where do I put it.
Submitted: 7 months ago.
Category: Capital Gains and Losses
Expert:  emc011075 replied 7 months ago.

Hi. My name is ***** ***** I will be happy to help you.

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.

Customer: replied 7 months ago.
In court since my father passed away to get my brother out of house. As soon as he was evicted, we sold the house. Since we need to fill in the value of his home at time of death, where can we find the value of a home twelve years ago.
Thank you.
Expert:  emc011075 replied 7 months ago.

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.

Expert:  emc011075 replied 7 months ago.

Lori, I see you offline now. So if this answered your question, please take a moment to rate my response so that I may receive credit for assisting you today. You find the rating bar on the top of the page – 5 stars. However, if you need clarification, or want to discuss this issue further, let me know. Thank you.

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