topic I received approximately $7K this year as my portion of sale of property from my father's estate. The estate attorney says I am responsible for figuring out if I owe tax in Deductions & credits

I received approximately $7K this year as my portion of sale of property from my father's estate. The estate attorney says I am responsible for figuring out if I owe tax

eileen-woodruff — Tue, 04 Jun 2019 18:42:53 GMT

When the estate return was filed the property was appraised at $24K so taxes were paid on that amount. In 2017 the property was re-appraised at $30K and sold for that amount. Do I use Schedule D to figure out if taxes are due on my portion (the 7K I rec'd)?

The cost basis, on inherited property, is the fair market...

Hal_Al — Tue, 04 Jun 2019 18:42:54 GMT

The cost basis, on inherited property, is the fair market value (FMV) on the date of death. That was apparently $24,000. If the property was sold for $30,000, the capital gain is $6,000. That can be adjusted downward for any expenses on the sale.

On your tax return, you report your share of the sale (apparently $7000) less your share of the cost basis (24,000 divided by the number of heirs) on form 8949,and then schedule D.

Thank you very much!! I wasn't aware of form 8949 so I...

eileen-woodruff — Tue, 04 Jun 2019 18:42:55 GMT

Thank you very much!! I wasn't aware of form 8949 so I will check that out. Really appreciate the quick response on here.

As a follow on question (much later as I am just getting...

eileen-woodruff — Tue, 04 Jun 2019 18:42:57 GMT

As a follow on question (much later as I am just getting back to this. I use TurboTax Deluxe and I need to know where I enter this information on the property sale/capital gain. The menu prompts do not contain anything that I can see about form 8949.

In TurboTax (TT), enter at: - Federal Taxes tab - Wages...

Hal_Al — Tue, 04 Jun 2019 18:42:58 GMT

In TurboTax (TT), enter at:
- Federal Taxes tab
- Wages & Income

Scroll down to:
-Investment Income
-Stocks, mutual funds, Bonds, Other (Real estate is other)

Thank you! I'll check it out.

eileen-woodruff — Tue, 04 Jun 2019 18:43:00 GMT

Thank you! I'll check it out.