Phillip1
New Member

Deductions & credits

If the sale was included in the Form 1041 (the sale should be reported on that return) there would have been a K-1 that should have been (or will be) provided to you. This will report your taxable income from the sale of the home on Schedule K-1 (Form 1041).

If the sale (for some reason) is not being reported through Form 1041, you would need to report your portion of the gain. The gain is the total sales proceeds minus the inherited cost basis (the fair market value on the date of your mother's death) divided by your share. For example, a home inherited by 4 siblings for 100,000 dollars in sales proceeds and a 90,000 dollars in inherited cost basis, would have taxable income of 2,500 dollars for each sibling. (100k-90k/4=2.5k)

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