Hello, KostasE!
Yes, you will split the basis of the property, as well. However, the basis for inherited property is not the origina owner's cost basis. The basis becomes te stepped up cost basis of the property which is usually equal to the fair market value when the owner died or the assets were transferred. A "stepped-up" basis means the cost basis is raised to the asset's market value on the original owner's date of death for tax purposes.ed up basis of the property.
In regards, to needing to file the sale of home earlier, you are required by the IRS to report the sale of the home, in the tax year in which it was sold. The sale goes on Schedule D and Form 8949 (Sales and Other Dispositions of Capital Assets). Schedule D reports any capital gain or loss on the sale.
In general, the IRS expects you to pay the tax ahead of time on the sale, if you anticipate you will owe more than a $1,000 in taxes, after considering withholdings and other payments. Estimated taxes are paid quarterly, and are due when the income was earned by the fifteenty day following the end of the quarters defined by the IRS: 1st quarterly estimate due, April 15, 2nd quarterly estimate due, June 15, 3rd quarterly estimate due September 15, and 4th quarterly due January 15. For example: if the sale occurred between September 1 and December 31, 2024, you will meed to make your estimated payment by January 15th, 2025.
Please feel free to reach backout with any additional questions or concerns you might have!
Have an amazing rest of your day!
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Terri Lynn
