@gloriah5200
Your feedback is so helpful! Thank you.
After deducting the cost of the sale of the house we are at a loss of about $25k from the FMV, which we determined based on the Comparative Market Analysis our realtor gave us within six month of the decedent's death.
A few more questions:
- The home sold nine months after decedents death, so is the "alternative FMV date" needed since it's past the six months period?
- The home was a primary residence, yet it was not a primary residence for the beneficiaries between the time of the decedent's death and the time it sold. So does it become an investment then?
- If the use is not "primary residence" to the beneficiaries AND it was a loss, can the beneficiaries deduct the $3,000 maximum as a capital gain loss on their personal tax returns?
- Also do I need to file Form 706? And if I do, is there a penalty with it being late, since I am doing this after the six month time period?
Thanks again!
