Just to clarify, you're not saying that a buyout on inherited property from a sibling is considered gross income for income tax purposes correct?
And to your point if it's considered personal property then why wouldn't it qualify as a capital loss?
Taken straight from the IRS : If the buyout price is lower than the stepped-up basis, you may have a capital loss (deductible for investment or rental property but not for personal-use property).
I'm not even sure what type of property this would qualify as, I did not live on the property but I also collected no rent so is it considered personal or investment in the eyes of the IRS?
