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I have a client who received a 1099S inheritance. Is this

Customer Question
I have a client who...
I have a client who received a 1099S for an inheritance. Is this reportable?
It was property owned by a deceased relative which was sold and the proceeds were split.
Submitted: 1 year ago.Category: Tax
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Answered in 3 minutes by:
3/13/2016
Tax Professional: Robin D., Senior Tax Advisor 4 replied 1 year ago
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15,890
Experience: 15years with H & R Block. Divisional leader, Instructor
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Hello

The inheriting of the property is not the taxable event. The selling of the property is reported.

The cost is the fair market value on the date the deceased passed away so if the property was sold close to the date of death then it is unlikely that there is a gain.

You report the cost as FMV and the difference in that and the sale price is gain or loss.

Please remember to rate my service excellent once you have all the information you need. If you have any other questions, please ask me – I’ll be happy to respond. Thank you!

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Tax Professional: Robin D., Senior Tax Advisor 4 replied 1 year ago

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