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Are you a US citizen or resident? Or are you a resident of Puerto Rico?
us citizen father left property to me and i sold it.
Oh so you inherited the property
he did not give it to you during his lifetime?
i became part owner while he was alive
Ok ... do you have a gain on the sale?
the house was paid off
No, you won't be taxed on the entire sale proceeds. You will only be taxed on the amount that exceeds your basis
Yes, you are only taxed on the amount that is over what you have invested in the property. Your basis will be calculated by taking your father's basis (what he paid for the asset) for your portion of the property that you got during his life. So, if your father paid $100,000 for the property and gave you half, half your basis is $50,000
Then the other half is the fair market value on the date of death of your father. So, if the property was worth $200,000 at the date of death, the half that you inherited is worth $100,000. Together you have a basis of $150,000
thank you for your help
Your welcome. So, if you sold the property for $155,000 you would only have a gain of $5,000
that's all you would be taxed on
and if you are a US citizen/resident you must place this on your US tax return
This is covered in tax topic 901 CLICK HERE and publication 570 CLICK HERE
Is there anything else I can assist you with today?
no that takes care of my question. thanks again
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