Solved: Mother died 8/19/17 and her condo was sold 11/28/17. Received a 1099s for my portion of the inheritance. Why is this showing up on schedule d as a long term asset.
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shirleyjohunt
New Member

Mother died 8/19/17 and her condo was sold 11/28/17. Received a 1099s for my portion of the inheritance. Why is this showing up on schedule d as a long term asset.

 
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PaulaM
Employee Tax Expert

Mother died 8/19/17 and her condo was sold 11/28/17. Received a 1099s for my portion of the inheritance. Why is this showing up on schedule d as a long term asset.

I'm sorry for the passing of your mother in 2017. 

Inherited property is always considered long term regardless of how long you held the asset. Your cost basis for the inherited home is the fair market value (FMV) at the date of her passing. This gives you a stepped up basis in the property.

Enter in the Investment section and choose 'Second Home' for type of investment sold.

Then enter the net proceeds from the sale. Continue on to enter that the property was inherited and the date of your mother's passing, and the FMV at the date of her passing. Continue to the gain/loss computation and entered on Schedule D. The sale is recorded on Schedule D even if a zero gain.

https://www.irs.gov/pub/irs-pdf/p551.pdf

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PaulaM
Employee Tax Expert

Mother died 8/19/17 and her condo was sold 11/28/17. Received a 1099s for my portion of the inheritance. Why is this showing up on schedule d as a long term asset.

I'm sorry for the passing of your mother in 2017. 

Inherited property is always considered long term regardless of how long you held the asset. Your cost basis for the inherited home is the fair market value (FMV) at the date of her passing. This gives you a stepped up basis in the property.

Enter in the Investment section and choose 'Second Home' for type of investment sold.

Then enter the net proceeds from the sale. Continue on to enter that the property was inherited and the date of your mother's passing, and the FMV at the date of her passing. Continue to the gain/loss computation and entered on Schedule D. The sale is recorded on Schedule D even if a zero gain.

https://www.irs.gov/pub/irs-pdf/p551.pdf

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tim131
Level 1

Mother died 8/19/17 and her condo was sold 11/28/17. Received a 1099s for my portion of the inheritance. Why is this showing up on schedule d as a long term asset.

We had a similar situation, my brother passed away and he had a house with a life estate and then upon passing my self and five siblings then owned it. We sold it for less than the FMV upon his passing date. Are we able to take the difference as a long term loss? Is inherited property like this eligible for a tax loss?

DMarkM1
Employee Tax Expert

Mother died 8/19/17 and her condo was sold 11/28/17. Received a 1099s for my portion of the inheritance. Why is this showing up on schedule d as a long term asset.

If you did not use the property as a personal residence you can claim the loss.  Follow the instructions from PaulaM above to make the entries. 

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