Rental Property Taxes after Sell

[blmooremoose]

My mother in law sold a rental in 2019. The rental property had belonged to her mom until 2017-2018 when her mother transferred the home into my mother in law's name. The property had a tenant that wasn't paying and had to be evicted. The eviction also took place in 2019. After the eviction, we found out the home was in really bad shape, so the decision was made to sell quickly without improvements. The home sold for $18,000. I've been trying to research to determine what taxes are owed from the sell of this property and I haven't found a good resource. Any help/advice would be great.

Thanks

[tagteam]

There is a decent thread in this Community for the scenario where a rental property is gifted (see link below). However, the relatively low gross sales price of $18,000 notwithstanding, you should most likely seek professional tax guidance for this matter.

Regardless, you will need to do some research and locate a few figures. One would be your mother-in-law's mother's basis in the property (i.e., most likely what she paid for the property). Another figure would be the accumulated depreciation deductions taken by your mother-in-law's mother during her period of ownership of the rental. Still another would be the fair market value on the date of the transfer from your mother-in-law's mother to your mother-in-law. 

https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/tax-on-giving-rental-...

[Carl]

The home sold for $18,000. I've been trying to research to determine what taxes are owed from the sell of this property and I haven't found a good resource. Any help/advice would be great.

All taxes with the exception of any capital gains taxes if applicable, were paid and settled at the closing of the sale. SO the only tax due would be income tax on any gain realized from the sale. So if you sold the property for less than it's cost basis, no income tax or capital gains tax is due or owed to any taxing authority.