How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Lev Your Own Question
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28273
Experience:  Taxes, Immigration, Labor Relations
870116
Type Your Tax Question Here...
Lev is online now
A new question is answered every 9 seconds

If the only asset of an estate is the sale of the personal

Customer Question

If the only asset of an estate is the sale of the personal residence of the decedent. The sale was for $102,000, and the FMV of the home was for $102,000. Wouldn't that mean that there is no gross income of the estate?
Submitted: 11 months ago.
Category: Tax
Expert:  Lev replied 11 months ago.

Yes - your assessment is correct - there is NO gain based on your information.

For inherited assets - there is so-called stepped basis equals to the fair market value at the time the decedent passed away.

That basis is used to calculate the gain or loss.

So - there is no gain,

but because there are some selling expenses - most likely - you will realize a small loss that may be used to reduce other taxable income.

Let me know if you need any help with reporting.