1099-S

[Andrew Hollar]

My father passed away in 2019, in South Carolina.  In 2020, his estate was finished with probate.  My sister and I took ownership of a trailer in Myrtle Beach, SC.  It was on the market prior to his death.  We sold it after his estate was probated.  The funds then went to my mom who paid down her trailer.  This was what dad wanted to do with these funds.  My sister and I received no benefit from these proceeds (sold for $70K).

We both received a 1099-S from that closing ($35,000 gross proceeds (each)) along with other documentation.  One of the other documents was an I-295 from the State of SC.  This form has box 12 checked (Gain Amount) and an amount of $0.

I'm assuming that this means that we pay no taxes on these proceeds?  What I cannot figure out is how to accommodate for these two forms (1099-S and I-295).

We purchased the TurboTax Deluxe version. 

Can you help me please.

Andrew Hollar

[Mike9241]

My sister and I took ownership of a trailer in Myrtle Beach, SC.  did you inherit the trailer either under your father's will or the laws of intestate succession in SC. if you owned it, you sold it and then made a gift to mom of the $70K 

in this case, the sale needs to be reported on your tax returns. there shouldn't be much if any, gain/loss because if you were the heirs you got as tax basis Fair Market Value on date of death.

then because each of you made a $35,000 gift to mom you need to file a gift tax return. Form 709

https://www.irs.gov/pub/irs-pdf/f709.pdf 

the sale gets report through the 1099-B worksheet for your1040's.  for date acquired type "inherited". TurboTax does not do form 709 

[Andrew Hollar]

If I’m filing a form 709 how do if I’m filing my return electronically?

[DoninGA]

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@Andrew Hollar wrote:

If I’m filing a form 709 how do if I’m filing my return electronically?

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An IRS Form 709 is Not included with your personal tax return.  The Form 709 cannot be e-filed, it can only printed and mailed to the IRS using this address (as shown on the Form 709 instructions) -

Department of the Treasury
Internal Revenue Service Center
Kansas City, MO 64999