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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10104
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I am currently trying to fill out a 593-C form, escrow

Customer Question

Hi,
I am currently trying to fill out a 593-C form, for the escrow company im using in the sale of my grandmothers home. she passed a few months back, and i was left as the sole beneficiary to her property.
im confused on what to "claim" on this form, can you assist?
Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.

Hi,

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You'll check box 3, if the property hasn't appreciated since the death of your grandmother.

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This is because assets received through inheritance receive what's called a "step-up" in tax basis to the fair market value of the property as of the date of death of the decedent.

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So a property sold only a few months after being inherited is not expected to have any gain.

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What this does require, as well, is completing Form 593-E, Real Estate Witholding-Computation of Estimated Gain or Loss, and have a loss or zero gain on line 16.

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You'll show the estimated sale price online 1 as equal to the basis (line 4) so that your estimated basis on line 16 is zero

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Please let me know if you have questions.

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Lane

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Expert:  Lane replied 1 year ago.

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OK I still don't see you coming back into the chat

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This is the only option that applies for the exemption from withholding ... BUT is very common for those that inherit and sell within a relatively short time a few months to a year, so that the property has not had time to appreciate (Could even create a small loss for you)

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I hope this has helped

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Lane

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