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 Robin D. Your Own Question
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15301
Experience:  15years with H & R Block. Divisional leader, Instructor
14155347
Type Your Tax Question Here...
Robin D. is online now
A new question is answered every 9 seconds

My mother passed away & we sold her house and divided the

Customer Question

My mother passed away & we sold her house and divided the selling price three ways.
Is nthis reportable income?
Submitted: 1 year ago.
Category: Tax
Expert:  Robin D. replied 1 year ago.

Hello

How this is reported depends on if the house was inherited and transferred to an individual or individuals prior to the sale.

Please tell me if the house transferred prior to the sale so I can advise specifically for you.

Expert:  Robin D. replied 1 year ago.

Was a 1099S issued showing the sale?

Expert:  Robin D. replied 1 year ago.

While I wait for you to respond, I can advise about general info.

Well if you (all 3) inherited the property you each claim one third of the basis and one third of the sale price. This will gain you, your gain or loss to report.

Your basis is the fair market value on the day your mother passed. This gives you a better tax position because the fair market value and the sale amount are closer. You may even have a loss.

It is reportable even if a loss.

I know rating takes an additional step and I truly appreciate it when you take the extra time!
You have to actively click on a rating (OK or Better) and click submit. Smiley Faces or Stars.
When you actively click on a rating and click submit, that lets Just Answer know you were assisted and credits me for the time.

Expert:  Robin D. replied 1 year ago.

Now that you have viewed my response, please post below if you need more information

Expert:  Robin D. replied 1 year ago.

Checking back to request if you were satisfied