??? But you are only inheriting the deceased person's equity in the real estate, not the portion that remains owned by the bank and is paid off as a result of the sale. If I claim the full sale price of the unit, including the $160,000 or so that paid off the existing mortgage on the unit, I end up with a massive write down on my own taxes. That can't possibly be correct. I should not be entitled to deduct more than the approx $27,000 the sale cost me.
