Okay thanks!
Realtor got back to me so now I'm conflicted. The FMV at the time by Dad bought the house in spring of 2012, she says, is the sellers asking price at the time which was $74,900 but they finally sold to my Dad for $65K so I dunno if they overpriced or they just wanted to sell no matter what and took the loss? The house wasn't languishing on the market for long when my Dad bought it.
The realtor also said that since he died in fall of 2013 that the FMV wouldn't have changed that much, if at all.
So if I use the $74,900 as my basis and I sold for $75, with my net proceed being $67,099 then that would mean I took a loss....? If so, I know losses aren't deductible but still need to be reported?
I think I'm even more confused now than before! Back in 2012-13, the housing market in my area was still really low/rock bottom but in recent years it's been recovering so how could the FMV back then be the $74,900 and yet the FMV when I sold in 2020 be just $100 more at $75?
I have a document the realtor sent me at the time of my Dad's 2012 purchase.
It's also good to know that I don't have to scan/send in any attachments when I file my 2020 taxes for this since that would've been my next question as the majority of papers between the HUD-1 and the 1099-S are exactly the same so I would've wondering what exactly TO scan, if not just all of them.
Thanks for the help so far but I feel like I'm stuck now. I want to do the right thing, I don't want the IRS mad at me so any further clarification would be appreciated?
