Hi! My father passed away in December. He left his home to me and my 2 siblings. We chose to sell it and, after 5 mths on the market, we finally sold it for less than we thought we would. We are closing tomorrow. I'm trying to figure out our capital gains situation. Here are the specifics: 1. We did not have an appraisal done at time of death (was last thing on our minds). The county appraisal district reported a tax value in 2023 of approximately $227k. For 2024, it was approx $240k. The CMA from the realtor assesses a comparative value of around $240k-$250k, compared to similar homes in his neighborhood/area. I don't know which to use to determine FMV at time of death. 2. The selling price is $235k. On the closing documents, they have the mortgage payoff ($110k) figured into the closing costs (along with the closing costs), listing a net proceeds of around $104k (divided by 3 siblings). 3. We also did around $2000 in qualified improvements, as a good faith gesture to get the buyer to commit. So, do we use the net proceeds, as reported in the closing documents, or subtract the mortgage payoff first? Any scenario will result in a capital gains loss, but with mortgage payoff included, it is a HUGE loss. Can't find anything online that addresses this type of scenario.
