Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

My siblings and I sold some inherited property this year and…

Customer Question
My siblings and I...

My siblings and I sold some inherited property this year and are not sure how to report it. It was in deplorable condition in 2011 when Dad passed and after several years of hauling away trash and clearing brush we sold it "as is" for $280,000 and split the proceeds 4 ways. We do not have a starting value. There was a house with renters, but they basically kept the yard mowed and covered property taxes so it was not an income property. How do we report this?

Accountant's Assistant: The Accountant will know how to help. Is there anything else the Accountant should be aware of?

I put 1/2 of mine into a 10-year annuity if that helps.

Submitted: 3 months ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 1 minute by:
3/23/2018
Tax Professional: Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional replied 3 months ago
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional
Category: Tax
Satisfied Customers: 2,611
Experience: IRS Licensed Enrolled Agent, CDFA ® CFP ®, MBA
Verified

Hello!

My name is***** will assist you today.

Please give me one moment while I review your question and type my initial response

Ask Your Own Tax Question
Tax Professional: Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional replied 3 months ago

Property that is inherited receives a step in cost basis to the fair market value at the date of death of the property owner.

Therefore, your starting point for determining your profit or loss is the value of the property at the date of death of your father plus any improvements you have made over the years.

Ask Your Own Tax Question
Tax Professional: Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional replied 3 months ago

Once you determine your starting point (cost basis) you will then subtract that amount from the total net sales proceeds to determine your overall gain or loss.

Ask Your Own Tax Question
Tax Professional: Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional replied 3 months ago

Given your description of the property, you would report the sale of the property as an investment property. You may not have received payment, but you did receive services from the renters.

___

Report the gain or loss on the sale of rental property on Form 4797, Sales of Business Property. Individuals typically use Schedule D (Form 1040), Capital Gains and Losses, together with Form 4797.

Please let me know if this has answered your question or if you have any additional questions.

When you have no further questions a positive rating of 5 stars is much appreciated.

Thank you!

Ask Your Own Tax Question
Tax Professional: Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional replied 3 months ago

Please let me know if this has answered your question or if you have any additional questions.

When you have no further questions a positive rating of 5 stars is much appreciated.

Thank you!

Ask Your Own Tax Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Chad EA, CDFA®, CFP® Your Own Question
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional
Category: Tax
Satisfied Customers: 2,611
2,611 Satisfied Customers
Experience: IRS Licensed Enrolled Agent, CDFA ® CFP ®, MBA

Chad EA, CDFA®, CFP® is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
I live in Alabama. My dad passed away and left four siblings
My dad passed away and left four siblings to equally divide the proceeds from the sale there of. We each got $15,000. Will there be a capital gains tax to pay? Lets say he left the house to my sister with instructions to divide the sale proceeds equally. Will she be responsible for capital gain taxes? … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
I inherited my dad's portion (50%) of the house he lived in
I inherited my dad's portion (50%) of the house he lived in with my Step-Mom with the understanding that she could live in the house until she sold or passed away. She has decided to sell the house no… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
My dad passed away several yrs ago and me and my 3 other siblings
My dad passed away several yrs ago and me and my 3 other siblings sold his house in December 2014. We sold the house for 20,000.00 and each sibling got 5000.00 and a 1099S form. We got a cost basis of… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
My siblings(3) and I obtained a title inherited property
My siblings(3) and I obtained a title for an inherited property in VA in June 2014 and sold it in 2 month. Should I report the 11 K to the feds, Az., VA? My other siblings are in MA. We each inherited… read more
Richard
Richard
Tax Attorney
Doctoral Degree
4,512 satisfied customers
I am hoping to purchase a one-half interest in a vacant lot
I am hoping to purchase a one-half interest in a vacant lot from my Dad's cousin. My Dad owns the other half interest. This vacant lot does not yet exist and will be created by splitting it off from t… read more
USTaxAdvising
USTaxAdvising
Partner
Bachelor's Degree
609 satisfied customers
My brother and I inherited a house that was appraised at $275,000
My brother and I inherited a house that was appraised at $275,000 at the time of death in 1998 in NYS. We kept the house until Dec 2011 when it was sold for $270,000. After transfer taxes for NYS and … read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
My husbands mother put all three siblings on her house deed
My husbands mother put all three siblings on her house deed in 2000. She passed away in 2011 and we sold the house. Is this considered a gift. The proceeds wer split three ways. Does this apply as cap… read more
fastfile
fastfile
Tax Advisor
Master's Degree
550 satisfied customers
Hello, We just sold my mom and dads modular home,my parents
Hello, We just sold my mom and dads modular home,my parents had set up a living trust in 2002. the proceeds were around $47,000. My brother and I will be splitting it. Could you please give me an idea… read more
FiveStarLaw
FiveStarLaw
Attorney
Doctoral Degree
477 satisfied customers
My siblings and I sold a house lot in November that our parents
My siblings and I sold a house lot in November that our parents gave to us a few years prior to their death. The lot was in Massachusetts. Do we have to pay Capital Gains on it?… read more
Bill
Bill
Master's Degree
2,278 satisfied customers
My dad passed away and I received $17K that I put into a safe
My dad passed away and I received $17K that I put into a safe harbor account (I had 15% of taxes taken out for the safe harbor account), $15K that went into a 5-yr cd, $72k of savings bonds (I cashed … read more
Wendy Reed
Wendy Reed
Master Tax Advisor Enrolled Agent
Master's Degree
60 satisfied customers
My uncle dies last year without a will. His home went to probate
My uncle dies last year without a will. His home went to probate and then to his remaining family members. We sold the house, and my portion of the proceeds were $7,700. The home was in Arkansas, I li… read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
My parents bought our family home in 1952. Mom died in 1968.
My parents bought our family home in 1952. Mom died in 1968. In 1974, , Dad added our sister's name to title so that she could serve as steward of proceeds when he died and family home was sold. Dad d… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
my wife inherited her fathers home. The house was appraised
my wife inherited her fathers home. The house was appraised for $110,000 and sold for $92,000. The total received after closing and all was around $82,000. This to be split 3 ways between the siblings… read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
myself and two of our siblings just accepted an offer for our
myself and two of our siblings just accepted an offer for our deceased parent's home. We are wondering what taxes we have to pay? The house was owned free and clear by our parents so we have no mortga… read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
My Mom and Dad have both passed away and left the house to
My Mom and Dad have both passed away and left the house to 6 siblings. It was stated in there Will to sell the house and split any profits 6 ways. Do we have to pay capital gains tax on the money we r… read more
Marvin,EA
Marvin,EA
Enrolled Agent
Bachelor's Degree
1,605 satisfied customers
my father passed away & we sold the house. the realtor told
my father passed away & we sold the house. the realtor told us this was not inheritance but income under my brothers name because the deed read "my father as to a life estate & my brother as to the re… read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
Does estate owe capital gains tax, and if so what is the rat
Our fathers house in New Jersey was sold to one of our siblings 13 years after our dad's death. This sibling was paying most if not all of the expenses over these years. The home was sold to him for $… read more
RD
RD
Self Employed
Master's Degree
1,164 satisfied customers
I am asking this question on behalf of a friend who does ...
I am asking this question on behalf of a friend who does not have access to a computer. My father is in a home and my mother is disabled and going blind see is very determined that she does not want t… read more
Ed Johnson
Ed Johnson
Senior HR Consultant and Business Devlpm
Bachelor's Degree
6,994 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x