I shared ownership of a home inherited with 4 other siblings when our mother passed away in 2007. Unfortunately, one of the siblings filed bankruptcy about 5 years ago and listed the property as an asset in his bankruptcy filing. Ultimately, it was turned over to the trustee in his bankruptcy case and they sold it as the remaining siblings could not afford to cover his debts in cash without it being sold. Of course, the remaining amount after fees was disbursed to the rest of us.
The house is in New York - New York City to be exact but I live in Georgia. I am wondering if there is a version of TurboTax that can help me properly address all of these filing concerns:
1) Do I owe taxes to New York City and / or New York State from the proceeds and filing those taxes for this situation?
2) I assume I owe taxes to the state of Georgia since it is considered income. The question is how much as the property was in our possession from 2007 until this year.
3) Regarding the IRS, I read about a 'Stepped-Up' tax situation where I would be taxed on the difference between the value of the home at the time of our mother's passing (in the process of getting property assessment docs from 2007 showing the value of the home) and the selling price divided by the number of siblings. Is "stepped-up" taxation also available for the state taxes (possibly NYC taxes as well) and will TurboTax be able to work this out?
4) I also donated 10% of my proceeds from this transaction as tithes to a church.
I have been using TurboTax for years and it is an easy filing. However, with this pretty remarkable change in income increase this year, I am not sure if there is a TurboTax version that can handle this or if I need a tax preparer or CPA familiar with real estate sales such as this one.
Thanks in advance.
