@Bsch4477 wrote:
If she doesn’t receive form 1099-S, which is likely, she doesn’t have to report the sale at all. You are correct that selling the home so soon would reflect the FMV accurately.
I disagree on this point. The idea that you don't have to report the sale of a home applies to the owner-occupant who qualifies for the exclusion. The daughter here is the heir/beneficiary and the property is basically investment property. So I think it needs to be reported on schedule D regardless of the 1099-S.
I generally agree that most of the time**, the selling price which is "close" to the date of the previous owner's death will represent the actual FMV, probably better than an appraisal. An appraisal is a best guess by an expert; but if the property is sold in the open to a stranger, then what they pay is the value they set.
**Selling price might not represent FMV if the home was being sold to a related party (relative, partner, etc.). And we could imagine some weird scenarios where the value changes (for example, if gold were discovered on the property between the date of death and the date of sale). But absent such unusual circumstances, you are on solid ground listing the sale price as the FMV.
