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I inherited an interest in a rental building in 1990. I have…

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I inherited an interest...

I inherited an interest in a rental building in 1990. I have been recieving annual payments from the rent on which I have been paying taxes The building has been sold and I received a check for my portion of the sale. What Federal taxes

Accountant's Assistant: The Accountant will know how to help. Is there anything else important you think the Accountant should know?

What Federal Tax do I owe as long term Capital gains or something else??

Submitted: 4 months ago.Category: Tax
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Answered in 7 minutes by:
3/15/2018
Tax Professional: Lev, Tax Advisor replied 4 months ago
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,140
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In general - that will be long term capital gain - taxed at reduced rates.

You will need to determine your gain which is calculated as

(sale price) MINUS (adjusted basis)

Your basis on inherited property is the fair market value of the property at the time the decedent passed away back in 1990

Then - you add improvement expenses and subtract accumulated depreciation.

Add sale expenses.

That will be your adjusted basis.

The gain may be partially taxed at zero percent and partially at 20% - depending on your TOTAL income, filing status, deductions, etc.

Let me know if you need any help with estimation.

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Customer reply replied 4 months ago
The property is in New York City. How doI find out the fair market value back in 1990?
Customer reply replied 4 months ago
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Customer reply replied 4 months ago
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Tax Professional: Lev, Tax Advisor replied 4 months ago

You may need to do historical apprasal for that.

Based on comparable sales at that time.

Please be aware that experts do not have access to your account - I may only address your tax related questions.

All other request please direct to the customer service .

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