After my Mom passed away this year I received 2,000 from the sale of her car and 63,943.33 from the sale of her home. Are these monies taxable?

Forum|Forum|6 years ago
October 19, 2019
7 replies
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TurboTax Self Employed Online

Critter

Level 15

Not the car ... but the house needs to be reported on your return IF the home sold was in your name ... if it was in the estate's name then the estate should report the sale. However, since the gain on the sale will probably be very little (or even a loss after cost of sale) then it will not hurt either return very much.

justrena4Author

Level 2

Thanks for your quick reply. I was listed as one of the sellers of my Mom's home along with three of my siblings. Does that make a difference? Also, before the end of the year I'll also be receiving $10,000 from my Mom's market money account. Is that amount taxable?

Critter

Level 15

Cash inherited from a MM account is not taxable ... however the interest that it earned since she passed is.

For the home ... each seller should have gotten a 1099-S from the closing company so you all need to report your share of the sale on your personal returns.

In short ... the sale price on the 1099-S - (the fair market value as of her death + cost to improve if any + cost of sale) = a profit or loss to be reported on the Sch D.

justrena4Author

Level 2

When you stated that the interest on the MM account is taxable do you mean on the 10,000 that I'll be getting before the end of this year because the entire account won't be closed out until after the first of next year. Once again, any monies will be divided out between me and my three other siblings.