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Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 13842
Experience:  20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
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I received a1099S form for the sale of my mothers property.

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I received a1099S form for the sale of my mothers property. She passed in June 2019. This is part of my inheritance. Sale was $ 39,750. Do I have to pay any type of tax on this?
JA: Have you talked to a tax professional about this?
Customer: No
JA: Anything else you want the Accountant to know before I connect you?
Customer: No thanks

Welcome to Just Answer. My name is Barbara, and I will be happy to assist you.

 

If you inherited the property and then sold it, you will report the sale on your tax return.

 

Whether or not you pay taxes depends on if you have a gain from the sale.

 

Gain is the difference between your basis (which is the fair market value as of the date of your mother's death) PLUS closing costs to sell

 

and

 

the sales price.

 

If you inherited the property and sold it shortly thereafter, you should not have a gain.

Customer: replied 5 days ago.
How will IRS know if I have a gain. As well how do I know.

I sold the property after her passing and the property was listed in her will.

You report the sale on your tax return.

 

Because you received a 1099-S, so does the IRS.

 

If you don't report the sale, the IRS will assume that the entire $39,750 is gain.

 

 

Barbara and other Tax Specialists are ready to help you
Customer: replied 5 days ago.
Thank you

My pleasure!