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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29970
Experience:  Taxes, Immigration, Labor Relations
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If the only asset of an estate is the sale of the personal

Customer Question

If the only asset of an estate is the sale of the personal residence of the decedent. The sale was for $102,000, and the FMV of the home was for $102,000. Wouldn't that mean that there is no gross income of the estate?
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.

Yes - your assessment is correct - there is NO gain based on your information.

For inherited assets - there is so-called stepped basis equals to the fair market value at the time the decedent passed away.

That basis is used to calculate the gain or loss.

So - there is no gain,

but because there are some selling expenses - most likely - you will realize a small loss that may be used to reduce other taxable income.

Let me know if you need any help with reporting.