Inherited real estate sales

Forum|Forum|1 year ago
February 19, 2025
5 replies
31 views

When the tax returns are submitted for the year and it shows that there was a sale if inherited real estate, does the IRS look at public records to confirm the date that the home was inherited by the children?

What is the best way to not raise a red flag in the sale of inherited real estate?

Ask the Experts - Deciphering - Feb 2025

RobertB4444

Level 15

You're going to enter all of the information about the inherited real estate. If the IRS reviews your return they might ask you to show how you came to the valuation you entered for the property. But in most cases they are aware that someone has died and they can see that the property was sold so they look to your numbers for confirmation of what is due.

Just maintain records of the valuation in case any questions come up and you should be fine.

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Need to knowAuthor

Level 2

What may the IRS look into if the inherited home sat vacant for over a year and then was used as a rental for 9 months before it was sold?

JohnB5677

Level 15

The first thing is that you evaluated the Value at the time of your mother's death. (just as RobertB4444 said) That establishes the basis of the property.

Then for the nine months you rented it, it should have been reported on your taxes. This would be a Schedule E.