topic inherited property and transfer to sister in Get your taxes done using TurboTax

inherited property and transfer to sister

mo20 — Mon, 23 Feb 2026 10:36:57 GMT

my mother left me 25% of her house. she passed in 2022 in California. I transferred (gifted) that to my sister who owns the other 75% of the house. I live in Missouri.

What federal and state forms do I need to complete?

do I need to complete irs form 709 to document receipt of property and another form to document transfer?

The 25% share is approximately $85K.

thanks,

Re: inherited property and transfer to sister

Carl — Fri, 20 Jan 2023 21:30:26 GMT

For federal taxes since the gift you gave in 2022 was more than $16,000 you need to file IRS Form 709 with the IRS. TurboTax does not support the form 709, and it does not get filed with your federal tax return. You can get a blank form 709 at https://www.irs.gov/pub/irs-pdf/f709.pdf. Just print it, fill it out and mail it to the address on page 5 of the instructions at https://www.irs.gov/pub/irs-pdf/i709.pdf

Note that only the giver is required to file this form. You will "NOT" pay any type of gift tax, provided the total lifetime gift to any one individual is less than $11.6M. But there is still a reporting requirement for gifts given in 2022 that exceed $16K.

Neither the giver or the recipient reports the gift anywhere on their 1040 tax return. However, in your case the recipient will simply increase the cost basis of the house by the value of the gift given.

Re: inherited property and transfer to sister

Anonymous_ — Fri, 20 Jan 2023 21:37:23 GMT

Since you gifted the house to your sister, she would take whatever your basis is in the share you gifted to her (most likely the fair market value on the date of death of your mother), @mo20

Re: inherited property and transfer to sister

GeorgeM777 — Fri, 20 Jan 2023 22:04:19 GMT

As a follow-up to the previous posts, inheritances are not considered income for federal tax purposes, whether you inherit cash, investments or property. Therefore, you would not owe any tax on the home you inherited and thus, there would be no federal tax forms to complete.

Just an fyi, any subsequent earnings on inherited assets are taxable, unless it comes from a tax-free source.

@mo20

Re: inherited property and transfer to sister

mo20 — Mon, 23 Jan 2023 16:10:17 GMT

Thanks for all the prompt responses.

Will follow recommendations.

really appreciate your help.