Mother passed away, sold her house and lost money, my K1 is 8000 dollars, what would my return be? Can’t figure it out since I need to do amendment. .

[SweetieJean]

Did you inherit her house, and then sell it?

[Hal_Al]

re you sure your K-1 is not negative (-) 8,000 (an $8,000 capital loss)? What box number on the k-1 is the $8000 in? Usually the K-1 shows your share of the gain or loss, not the amount of money you received.

[Carl]

Note that per SweetieJean's question, for taxes it matters big time if the estate owned the house prior to the sale, or if you inherited the house (meaning your name was on the title as the last owner before the sale) and then *you* sold it. It sounds to me like the estate sold the house, and you never legally owned it.

[sonnynoah]

Both parent passed away,House was left to me and my three brothers.  Mortgage was paid in full,so we owned it out right , I ended up staying there with my family while we fixed it up and paid all the taxes, utilities and upkeep.Also had to fix what she never had a permit for and get it to where it was legal and allowed to sell exactly as it was.  Sold it but we took a loss because it was getting to expensive to keep up with taxes and my own expenses. So my brother called me to tell me that I need to do a K1 1041 with my tax return, he said we took a loss and we were t sit it 4 ways.So My sure was about 8000, since I already did my taxes and k ew nothing. About this  K1 he told me to amend it and then add this new information and I should get a good amount back. This is IRS very confusing and it makes no sense, jist womdering if anybody knew off hand how much I should get back, already received my tax return for this year so I know This will only be additional money coming.   Just seewant no of anybody has an idea if I’ll get back a good amount or very little... ok thanks you

[sonnynoah]

We took a loss ,so it was like 32,000 we had to split and use (8000) as a deduction ( he said we would get back since we lost and spent so much of our own money to pay real estate taxes, lawyer fee, maintenance and utilities... This is all new and it’s confusing. Thanks again

[sonnynoah]

My wife was messing around with thisFor a couple hours and she came up with a $3000 return but she’s not sure if this is correct so that’s why I’m here asking if anybody has an idea how much I could possibly be getting

[sonnynoah]

Went to HR Block, was told to call 800 number since they can’t help me inthe office.....So going to see how this goes.    Thanks for all the help

[Hal_Al · Accepted solution]

You may want to see a profession tax preparer to get this straightened out.

A capital loss on personal use property is not deductible. You say you lived there while you fixed it up. That may or may not be "personal use". If you stayed there solely for the purpose of repairing the home and you still maintained your primary residence some where else, then that would not be personal use. 

Although you each  had an $8000 loss, you may only deduct $3000 against ordinary income.  So, if you are in the 15% tax bracket, you can expect to save about $450 in taxes or get a $450 refund. If you have other capital gains, you may deduct the loss against the gains. Otherwise, the other $5000 gets carried to next year's tax return.

If you do amend, you do not prepare a Schedule K-1 or form 1041. Those are for use by the estate administrator, only if the estate needs to file a tax return. You can report the capital loss directly on form 8949 and Schedule D (Enter in TurboTax as the sale of real estate investment property).