topic Capital Gains - Real Estate in Get your taxes done using TurboTax

Capital Gains - Real Estate

gofastmikey — Tue, 23 Mar 2021 20:56:19 GMT

My brothers and I inherited our mothers house as a result of a "Transfer on Death Deed" in 2016. We sold the house in December 2020 for $4,000 above the 2016 apprased value. Do we need to complete a Schedule D and possibly a Form 8949 for each of our 1/3 amount? If so, is there anything special related to the Capital Gains for the selling of the house? The title company has submitted 1099-S to the IRS for each of our shares for the sale of the house. Besides the possible 1/3 Capital Gains, is there anything else we need to be concerned about with the inheritance and sale of the house?

Re: Capital Gains - Real Estate

NCperson — Tue, 23 Mar 2021 20:59:09 GMT

your cost basis is what it was worth on your mother's date of death.

it's unlikely there are capital gains as your 'gain' is that $4000 less the closing costs. Could be a capital loss.

Re: Capital Gains - Real Estate

gofastmikey — Tue, 23 Mar 2021 21:31:05 GMT

The seller paid all the closing costs so we should probably show the $4,000 as capital gains.

Re: Capital Gains - Real Estate

gofastmikey — Wed, 24 Mar 2021 00:13:49 GMT

My mistake, the buyer, paid all the closing costs.