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My Father passed away in 2009. My siblings and are are selling

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My Father passed away in...
My Father passed away in 2009. My siblings and are are selling his house. I'm sure the sale price will be less than what it was worth when he passed. I have two questions.. 1) Can we claim a loss on our taxes due to the sale price being less than the worth at the time of his death? 2) Do we have to claim the proceeds from the house as income and pay taxes? (His total estate was less than $1M).
Submitted: 7 years ago.Category: Tax
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11/1/2010
Tax Professional: Richard, Tax Attorney replied 7 years ago
Richard
Richard, Tax Attorney
Category: Tax
Satisfied Customers: 56,025
Experience: 29 years of experience as a tax, real estate, and business attorney.
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Good evening. 1) Yes, it will be a capital investment loss....short term or long term depending upon whether it sold 12 months or more after the death. 2) No, the inheritance of the house is not subject to income tax and the estate being under $1,000,000 would not be subject to estate tax.

 

 

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Customer reply replied 7 years ago
So...just so I understand...if the house was worth 400K when my dad passed and we sell it for 300K, I can claim a 100K capital loss on my taxes? And I do not have to include the 300K as part of my income for this year? I find it hard to believe that I can claim the loss, but I don't include 300K as part of my income (federal or state)...so just want to confirm both...as I did have to claim an IRA inheritance and a pension payout as part of my income last year...
Tax Professional: Richard, Tax Attorney replied 7 years ago
Yes...and then no...because the $300,000 was basically inheritance that was not subject to estate tax.
Richard
Richard, Tax Attorney
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Satisfied Customers: 56,025
Experience: 29 years of experience as a tax, real estate, and business attorney.
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