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I am currently trying to fill out a 593-C form, escrow

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Hi, I am currently trying to...
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: 2 years ago.Category: Tax
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Answered in 24 minutes by:
8/25/2015
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 2 years ago
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 13,282
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified

Hi,

...

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

...

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.

...

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

...

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.

...

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

...

Please let me know if you have questions.

...

Lane

...

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Tax Professional: Lane, JD, CFP, MBA, CRPS replied 2 years ago

..

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

...

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)

...

I hope this has helped

...

Lane

...

If this HAS helped, and you don't have further questions on this, your positive rating … (by clicking or touching the stars or smileys on your screen) … would be appreciated!That’s how we’re credited for the work here.

.

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