Our mom passed away in Dec 2020. We sold her house to cash buyers for $95K. Me and my brother each received a 1099-S, showing our portion which comes to $47K each.
My question is, is this considered inherited property? I know I need to claim the 1099-S, but first I need to figure out the FMV, but what if there is a loss, am I entitled to claim a LOSS on the sale of my mom's house? If there is a gain, I know I will pay taxes on it.
I was reading the IRS publications, however still unclear.
We did not sell it any relatives, yes, we lived in when we children but not as grow adults, does that disqualify us for the personal use?
No appraisal was done, so we don't have a starting FMV or appraisal. The best thing I was going to do, was look up the home value on the house around the time mom passed and take that value as FMV. Would that be acceptable?
