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Level 1

Sale of inherited land between siblings

Father passed away 9-22-2012. He had no will. Mother quick claimed her interest to the 4 siblings in 2015. The land mkt value on TN property data website shows $13,300. On 3-28-2016 the land was sold and one half of the proceeds went to our father's brother and the other half was split between myself and my 3 siblings. We each made $6062.50. When I enter the market value and the amount I made from the sale, it shows a loss. Just want to make sure we are entering this correctly.
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Level 1

Sale of inherited land between siblings

When you report your basis in the property, you will not report the full amount.

The basis of the total property is $13,300.  The basis in your "portion" of the property is 1/8 of $13,300 or $1,662.50. (1/2 of the basis is claimed by your uncle, and the other 1/2 of the basis is split in 4 between you and your siblings).

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Highlighted
Level 1

Sale of inherited land between siblings

When you report your basis in the property, you will not report the full amount.

The basis of the total property is $13,300.  The basis in your "portion" of the property is 1/8 of $13,300 or $1,662.50. (1/2 of the basis is claimed by your uncle, and the other 1/2 of the basis is split in 4 between you and your siblings).

Level 1

Sale of inherited land between siblings

What happens if the proceeds are NOT distributed evenly? If one sibling gets $10K, another $4K, and another $2.5K, are their gains taxed accordingly or evenly, (which would be unfair)?