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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10135
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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REceived a 1099S for $225000, from inheritance. No other

Customer Question

REceived a 1099S for $225000, from inheritance. No other details Is it reportable
Submitted: 8 months ago.
Category: Tax
Expert:  Lane replied 8 months ago.

Hi,

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Yes, it's reportable (IRS got a copy too and the system is expecting to see a sales proceeds that matches that amount on the schedule D.

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However, if this sale was in a short time (a year or so) from the time that the decedent passed, then you would likely have no gain (so no tax) or maybe even a small loss.

Expert:  Lane replied 8 months ago.

Capital gain is the difference in sales price and basis (basis is normally purchase price plus improvements)

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However, when someone inherits a capital asset (house, land, stock, etc) the basis is "stepped-up" to the Fair Market Value of the asset as of the date of death.

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So, if you sell before the property has had time to appreciate in value you likely break even and have no gain to report, or given sales costs potentially even a deductible loss

Expert:  Lane replied 8 months ago.

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I hope this has helped.

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Please let me know if you have any questions at all.

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If this HAS helped, and you DON’T have other questions … I'd really appreciate a positive rating (using the rating request, faces, or stars on your screen)

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That's the only way I'll be credited for the work here.

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Thank you!

Lane

Expert:  Lane replied 8 months ago.

Did you see my answer?