When my wife’s bother died he left his house to both his surviving wife and his sister (my wife), split 50/50. He had purchased the house before getting married and never updated the deed to include his wife’s name, instead indicating in his will that the house be split between his wife and his sister.
It took a while (over a year) to get the house in a condition suitable for sale. While getting the house ready for sale his surviving wife lived in the house most of the time. There was some significant work that had to be done to the house, such as mold removal, structural repairs, building code compliance, etc.
My wife and I file are taxes as married filing jointly and I use TuboTax Deluxe to prepare our taxes. While working on our taxes ran into a couple of questions I’m hoping to get help with:
- How do I enter the sale of an inherited house in TuboTax and in addition to the sale price are the expenses of getting the house in order and closing costs entered in TuboTax?
- The house was in NJ and my wife and I are residents of MD. Does she (or we) need to file a tax return in NJ and will she have to pay tax on the sale of the house?
