My brother sold our family home and gave me my share of 1500.00 what is tax that needs to be paid on that amount.

Forum|Forum|7 years ago
June 4, 2019
9 replies
54 views

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Hal_Al

Level 15

Probably no tax is due, but more detail is needed before you can get a definitive answer.
If this is the sale of an inherited house, sold shortly after the death of the previous owner, there is usually no capital to pay tax on. The sale does not need to be reported, unless a form 1099-S was issued

alejandrorod71Author

Level 2

No the house was my Mother and Father witch my brother was living in but he past away and my older brother had to fix all state taxes and other thing due to home since he was in charge of the estate. He sold the house after all taxes paid off and then gave me a part of the sale of what the house was sold for as the parents will stated.

Hal_Al

Level 15

Still not clear. You parents died some time ago; who owned the house after that? Your recently deceased brother or all three siblings equally, or was it held by a trust?

alejandrorod71Author

Level 2

The house was in the Will witch my bother sold as executor of the will then gave us our share of the sale of the house as the will stated. House was not in trust. My mother was last person alive that owned the house and she left us the house in her will.

Hal_Al

Level 15

On death, all property "steps up" in cost basis, for tax purposes.

It may best be explained by example. Your mother bough a house years ago for $10,000. When she died it was worth $100,000. Your cost basis is $100,000. You later sell it for $110,000, paying $7000 in commissions and other expenses. You have a long term capital gain of $3000 (110,000 -7000 - 100,000 = 3000) to report on your tax return. If 3 siblings shared the sale proceeds, each would report a $1000 capital gain on their tax return. If the house was sold for a loss, a capital loss on personal property ("my brother was living in") is not deductible.

The $1500 proceeds you received is not relevant, nor is the "state taxes and other thing due"

alejandrorod71Author

Level 2

Ok I know house was sold at loss no capital gain, sadly my brother who passed away did not take care taxes so when he passed My brother who was in charge of the will had to clean it up and pay past due taxes on house and other fee and sold it at a loss and what was left was was given to us and child of my brother who past away.