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taxmanrog, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 743
Experience:  Licensed CPA, MA, MST with 31 years' experience. Teach Accounting and Tax courses at Masters level.
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What is the percent of federal tax on an estate sale of

Customer Question

what is the percent of federal tax on an estate sale of property?
JA: The Expert will know how to help. Please tell me more, so we can help you best.
Customer: I am the executor of my dads will & we sold his house & land for $223.000,i need to know how much federal tax has to paid.
JA: Is there anything else important you think the Expert should know?
Customer: i have to divide the money with 4 brothers,the amount i have after closing is $206,539.99.
Submitted: 1 month ago.
Category: Tax
Expert:  taxmanrog replied 1 month ago.

Welcome to Just Answer! Thank you for giving me the opportunity to assist you! I will do my best to help!

Please give me a few minutes to type my answer.

Expert:  taxmanrog replied 1 month ago.

When you sold the house for $250,000, you may actually have a small loss based on the above.

The estate's basis in the house is the fair market value (FMV) of the house on the date of death. IF the house was sold within a year of the date of death, you can argue that the sales price was the FMV at the date of death, unless in the period of time between the date of death and the sale had some major fluctuations in the real estate market.

So if you take the sales price, subtract the basis, and then subtract the closing costs, you usually have a small loss. In your case, $223k sales price - $223k basis, less closing costs (I am assuming the difference between the sales price and the cash to distribute is qualified closing costs) gives you a loss of $16,460.01 do be divided between the 4 of you.

I hope this answers your questions. If you have any more, please feel free to ask and I will be happy to answer.

Thanks! Have a great week!


Expert:  taxmanrog replied 1 month ago.

I have not heard back from you. Do you have any further questions?

If you don't, can you please rate me? That is how the question is closed.