3 siblings sold moms house under 6 months after death. each rec a 1099-s with the total net proceeds amount, what do we show in net proceed amount in investments?

deana_walker — Thu, 06 Jun 2019 13:09:54 GMT

so mom passed away 5/29/2017 we sold her house on 11/21/17. we all three received a 1099-S showing the same Gross Proceeds amount of 51,666,68 yet we split the proceeds. Do we have to all three show the gross proceeds or just the portion we received.

You will each need to only show your proportionate share...

DS30 — Thu, 06 Jun 2019 13:09:54 GMT

You will each need to only show your proportionate share of the total proceeds being reported on 1099-S. (I am sorry for your loss)

So for example, if the total proceeds are $51,666.68, then you will split it 3 ways and only report 17,222 each on your separate returns. For the cost basis, you will use the FMV at the date of inheritance.

To enter the sale of a capital asset in TurboTax, log into your tax return (for TurboTax Online sign-in, click Here and click on "Take me to my return") type "investment sales" in the search bar then select "jump to investment sales". TurboTax will guide you in entering this information.

Choose “Stocks, Mutual Funds, Bonds, Other” and select “start’ (or “update” is you have already worked on this section)
The first screen will ask if you sold any investments during the current tax year (This includes any sale of real property held as an investment property so answer “yes” to this question)
Since you did not receive a 1099-B, answer “no” to the 1099-B question
Choose type of investment you sold - select everything else
Some basic information:

Description – Usually the address of the property sold
Sales Proceeds – Your proportionate share of the net proceeds from the sale (your portion of 1099-S amount received for the property)
Date Sold – Date you sold the property (on 1099-S)

Tell us how you acquired the property - inheritance
Enter the date inherited
Enter the your fair market value - Your proportionate share of the Fair Market Value of the property at the time of inheritance plus any capital improvements since inheriting it
If you had a loss, on the question of "Did you use this property for business or investment?" If the inherited house was not used for any personal use (no family member lived in it or used it between the time of inheritance and the sale), you will answer that this was for investment

Click IRS answers on Gifts and Inheritance for more information from the IRS on the sale of an inherited property.

topic 3 siblings sold moms house under 6 months after death. each rec a 1099-s with the total net proceeds amount, what do we show in net proceed amount in investments? in Deductions & credits

3 siblings sold moms house under 6 months after death. each rec a 1099-s with the total net proceeds amount, what do we show in net proceed amount in investments?

You will each need to only show your proportionate share...