My sister and I inherited a house from our father. We never lived in the house and it has been rented for more than the last 2 years. Last year, 2022, we sold the property. However, I didn't receive my share of the profits until this year, 2023. Because California was declared a disaster area, our tax filing date was automatically extended to October 18, 2023. Therefore, I have not filed my 2022 income tax.
Do I report this as income in 2022 or 2023? Because I did not know the amount of this income from 2022, I was unable to cover the amount by increasing my quarterly tax payments amounts. As a test, I entered the amount as income in my 2022 tax. As a result, TurboTax calculated the I owed an underpayment penalty of $10,000.
