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Ed Johnson
Ed Johnson, Tax Preparer
Category: Tax
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Experience:  GPHR Cert; U.S. Treasury Tax Advocacy Panel appointee
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my father passed in feb 07 sold his house in june got about ...

Resolved Question:

my father passed in feb 07 sold his house in june got about $20000 from sale after mortgage and costs paid split proceeds with 2 sisters do i pay fed income tax on this
Submitted: 6 years ago.
Category: Tax
Expert:  Ed Johnson replied 6 years ago.

DearCustomer

 

Was the home sold as part of the estate, by the estate executor or representative. If so, then the proceeds of the sell, which were distributed OUT of the estate were inherited money and are not taxed at all to the recipients.

was the home sold after it was transfered to you or others, such that one would obviously say the home was inherited? IN this case, you would be subject to capital gains tax.

Use the following formula to determine any capital gains:

Capital gains for selling inherited property = Sale price of the home - (FMV of the home as of the time of death, + improvements, + major repairs) - cost of selling.

If you sold the property close to the time of inheritance, then likely there will be little if any capitall gain.

So if you sold this after the property was transfered to you as an inheritance, your capital gain, if any, would be taxed as a long term investment, at 15%.

Ed Johnson, Tax Preparer
Category: Tax
Satisfied Customers: 10760
Experience: GPHR Cert; U.S. Treasury Tax Advocacy Panel appointee
Ed Johnson and 2 other Tax Specialists are ready to help you
Customer: replied 6 years ago.
the house was sold as part of the estate then proceeds distributed do i still need to report this on my taxes ? (because i recieved 1099-s)

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