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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29965
Experience:  Taxes, Immigration, Labor Relations
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My mother passed away in 2007, I was left executor and last

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My mother passed away in 2007, I was left executor and last month her house which was rented by my nephew was finally sold to him, her estate was never probated we received $27,000 I was the executor check was issued to me and I was told the 1099 would come to my house since the bank used by social security number and issued check to me. Approximately how much tax might I expect to pay on this inheritance, I live in Illinois and am retired.
Submitted: 8 years ago.
Category: Tax
Expert:  Lev replied 8 years ago.

As the property was inherited - you have a stepped up basis that is a fair market value of the property on the day your mother died.

If you had any improvement expenses - they should be added to the basis.

Your capital gain is calculated as (selling price) - ( basis) - (selling expenses)


I assume that you was a beneficiary of your mother's estate (even if it was not probated)

Capital gain should be reported by the beneficiary on the individual tax return - use schedule D part II long term capital gain -

I suggest to report the sale transaction even there is no capital gain - to avoid any notes from the IRS.

Depending on your income - if you are in 15% tax bracket or below - there will be zero percent capital gain, otherwise it will be taxed up to 15%.

Let me know if you need any help to estimate your tax liability.





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