My mother and her siblings inherited the home of their parents when the last one of them died in June 2021. Due to the fact that my mother is deceased, her portion of the home was supposed to go to me. I never know that I was a beneficiary or hear anything about this until I was told by one of my mother's siblings that one of the siblings was buying out the other siblings. I received a check for $15,000.00 from an escrow agency, but never heard any more about it. I am assuming that I owe no taxes because of the stepped up tax basis. Am I required to file anything??
If the property was immediately sold after the death, then you probably will not owe any taxes on the transaction, however, you are required to report the sale of inherited property.. TurboTax will calculate the taxability of the sale based on the information entered.
Steps to report the sale of inherited property below:
When you inherit property after the owner dies you automatically receive a "stepped-up basis." This means that the home's cost for tax purposes is not what the now-deceased prior owner paid for it. Instead, its basis is its fair market value at the date of the prior owner's death.
Use this link for more information on basis of inherited property. Sale of Inherited Property - IRS
You would not have to file anything since an inheritance is not taxed.
You might owe nothing (if the basis is essentially the same as the amount you received), but you will not know that unless and until you contact the estate administrator (or other responsible party).
You should also receive a tax reporting statement if this issue had been handled properly.
Frankly, you should contact a local attorney that specializes in estate planning (probate matters, et al) since you also have no idea whether one or more parties is trying to pull a fast one on you (it happens more than anyone would care to admit). You can find a lawyer by using the link below and look for one who offers a free initial consultation.
If the property was immediately sold after the death, then you probably will not owe any taxes on the transaction, however, you are required to report the sale of inherited property.. TurboTax will calculate the taxability of the sale based on the information entered.
Steps to report the sale of inherited property below:
When you inherit property after the owner dies you automatically receive a "stepped-up basis." This means that the home's cost for tax purposes is not what the now-deceased prior owner paid for it. Instead, its basis is its fair market value at the date of the prior owner's death.
Use this link for more information on basis of inherited property. Sale of Inherited Property - IRS
I never know that I was a beneficiary or hear anything about this until I was told by one of my mother's siblings that one of the siblings was buying out the other siblings. I received a check for $15,000.00 from an escrow agency, but never heard any more about it.
Sounds like one or more other beneficiaries are pulling a fast one on you. I highly recommend you seek the legal advice of an estate attorney and find out what's going on. I would not be surprised if you're being "swindled" (for lack of a more polite word) out of an amount that is significantly more than the $15K check you got.