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Phillip B, EA
Phillip B, EA, Enrolled Agent
Category: Tax
Satisfied Customers: 704
Experience:  Practicing since 2004. Expert in 1040, small business, represent vs. IRS, & int'l tax mattters.
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I need to ask a question. My mother passed away last year

Customer Question

I need to ask a question. My mother passed away last year August 2015. I am now in probate with my mother estate (Intestate). She left behind a mobile home that is a hoarders house full of things and had animals. The appraiser only appraised the land at $5900.00 as the house is at this time not sellable. Can I sell this property for 100.00 as is to any one who would purchase it? And if so what would happen with the tax?
Submitted: 1 year ago.
Category: Tax
Expert:  Phillip B, EA replied 1 year ago.

Thanks for using! I will do my best to provide you with a clear and concise answer to your tax question based on the information that you have provided.

In this situation, it sounds like there would be no income tax consequence if you sold the property for 100 dollars. Ordinarily, when someone dies, the beneficiaries are granted a cost basis of market value at date of death. Cost basis determines a deduction against a price that you sell the asset and it determines the capital gain or loss. You would have at least a 5900 dollar basis in the land. Therefore selling for 100 dollars would be produce a loss. The 5,800 dollar loss would be deductible up to 3,000 dollars as a capital loss against your other income (as long as the property was not used a personal use property of the beneficiaries).

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