inherited property

[brnssn]

inherited property ( with 3 other siblings) in 3/2025 sold it in 4/2025 . was a duplex that parents lived in - lived in one side and rented the other side. owned for more than 15 years.  No one has lived in or collected rent since 7/2023. would this be tax form 4797 or 8949? also do I list sold/stepped up bassis and expenses as one number or divided by 4 ? thanks 

[KrisD15]

If this was the sale of an inherited house, there would be no capital gain as long as you sold it as is soon after the inheritance and did no major improvements. 

There normally is capital gain and depreciation recapture on a rental, but that all goes away if the property is inherited. 

There will be no taxable income for this sale based on what you posted, that it was owned and used as a partial rental by your parents and later inherited by you and your siblings and sold immediately afterwards. 

If you received a 1099-S, you can enter it into the program, but again, there will be no gain, however there may be a small loss for the selling fees. 

If you are claiming a small loss, you should only report your 1/4th. 

It will be reported as no gain on Schedule D.

We are sorry for your loss. 

IRS LINK 

[brnssn]

the property did get improvements during the time it was vacant  - does it still not have any tax implications . Realty company did send 1099 S form to IRS 

[M-MTax]

You can add the cost of any improvements that were made after death to your basis.

Sorry for your loss.

[brnssn]

the property did get improvements during the time it was vacant ( when it was still owned by parent ) - does it still not have any tax implications . Realty company did send 1099 S form to IRS 

[M-MTax]

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@brnssn wrote:

the property did get improvements during the time it was vacant ( when it was still owned by parent ) - does it still not have any tax implications .

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If the property was improved while it was vacant and owned by the deceased parent, then there are no tax implications in the sense that the cost of those improvements cannot be added to the basis.