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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29574
Experience:  Taxes, Immigration, Labor Relations
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My sister owns a house that our mom lived in years

Customer Question

My sister owns a house that our mom lived in for many years until she passed away recently. My sister now plans to sell the house and give me a portion of the proceeds. My sister says that I will eventually get a check from the escrow company for my share of the sale proceeds. My question is: Will I need to report the amount received as income for tax purposes?
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.
If your sister is the ONLY owner of the property - and your name is ***** ***** on the title - it is not clear why the escrow company would ever issue a check in your name?It looks as there is a missing information - and you either listed as a co-owner or are entitled for the inheritance.Please verify.
Customer: replied 1 year ago.
I am not listed as a co-owner. My sister said that she would have the escrow company issue separate checks for us so we would each have to pay are own income taxes on the transaction.
Expert:  Lev replied 1 year ago.
I feel that we are still are missing information...If you are NOT an owner - you may not be held responsible for income realized from the sale of that property.
Expert:  Lev replied 1 year ago.
That must be communicated with the title company.Based on your information you ARE a co-owner as the income will be taxable for you.Can you communicate with your sister and verify as you might have not complete information?Let me know if you prefer to discuss over the phone.