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Arthur Rubin
Arthur Rubin, Tax Preparer
Category: Capital Gains and Losses
Satisfied Customers: 1493
Experience:  Over 22 years of tax preparation experience.
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MY WIFE INHERITED A 20% INTEREST IN A DUPLEX FROM HER UNCLE.

Customer Question

MY WIFE INHERITED A 20% INTEREST IN A DUPLEX FROM HER UNCLE. THE PROPERTY WAS APPAISED AT 595,000 AND WAS SOLD FOR 500,000. CAN WE TAKE A CAPITAL LOSS OF 20% ON THE DIFFERENCE.
Submitted: 8 months ago.
Category: Capital Gains and Losses
Expert:  Arthur Rubin replied 8 months ago.
In general, yes, but there needs to be an explanation as to why the sale price was so much less than the appraisal price. The IRS can challenge the appraisal.... If your wife actually received the 20% share, she can claim a capital loss on 20% of the difference. She should have received a "nominee" 1099S indicating her share of the proceeds. If your wife was going to receive the 20% share, it's likely the estate can claim a capital loss, which is "distributed" to the beneficiaries when the estate closes.

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