3 of us inherited a home in Feb 2024. We sold the home in July 2024. We each got 1/3 of the proceeds which was $33,333.34 reported on 1099-s. The fair market value was $110,000. I entered
Type of investment - Other
How did I receive it - I inherited it
Descrip - inherited property/home 33.3% share of home
Date disposed - 07/03/2024
Proceeds - $33,333.34
FMV - $36,666.67
Is this the correct way to enter the info?
It is the correct way to report it, however, you can deduct your share of the selling expenses from the gross proceed.
Sales expenses include:
Would the property taxes for the current year paid by the seller which were deducted from the selling price in the real estate transaction be considered sales expenses that can be included on the tax return expenses?
Yes. If you are not deducting the property taxes anywhere else then you can deduct property taxes paid at closing as "Sales Expenses".