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What was the value of the house when your mother passed away
Here is a link to the IRS that discusses your question:
If you have any further question, contact me
Sorry for the delay in responding to your last question but my internet service went down.
If the property was sold for more than the value of the property at the time your mother passed away then you would have a long term capital gain and report it on Schedule D as such.
Therefore if the property was valued at less than $450,000 when you inherited it then you would have to report the gain from the sales (minus any expenses of sale) on Schedule D as a long term capital gain.
You indicated that it was worth $450,000 at the time of your mother's passing and you sold it for that amount. If that is correct then you have no tax liability but you still have to report the sale on Schedule D as a long term holding. However in Column "f" the gain/or loss would be $0.
The IRS is expecting to see the proceeds accounted for but there is no tax if there is no gain.
I hope this helps clear up your question, but if you have additional questions about this contact me back.
Sorry forthe delay but my internet service has been giving me fits all day.
In my first question to you on 3/24 I specifically asked you to give me the value of the house when your mother passed away. Your response was $400,000. Now it seems that you are saying the house was valued at $250,000 at the time of your mother's death. That creates a capital gain of $200,000 that will be split among the heirs in the proportion they received the proceeds.
As I stated in an earlier response:
One other question what was the house used for over the last 4 or 5 years?
Also, I inquired earlier about the total value of you mother's estate when she passed away. and don't think you gave me that information. Depending upon the year she died and the total value of the estate an estate tax return may not have been required.