1099s sale of home

sugar1313t — Thu, 06 Jun 2019 14:05:20 GMT

My dad died and left my brothers and I his house- we sold it and split the money- how do I report it and the closing costs? Also no inheritance tax on this money?

There is no federal inheritance tax. Sales of real estate...

Hal_Al — Thu, 06 Jun 2019 14:05:24 GMT

There is no federal inheritance tax.

Sales of real estate are usually reportable on your tax return, especially if a form 1099-S is issued. There will most likely be no capital gain and therefore no tax. Any capital gain would be on the difference between what the house was worth on the date of the decedent's death (your "cost basis") and what the house sold for. If you made any improvements, those costs would be added to your cost basis in determining the capital gain. Add your closing cost to the cost basis. Report only your share of the sale and basis and capital gain or loss. Whether you have a deductible capital loss is dependent on the answers to the details.

If you lived in the house, you cannot take a deduction for a loss on the sale of a residence, even a second home.

If the house was "investment property", and sat vacant all this time, you can deduct the loss.

If it was rented out, you can still deduct the loss (it's rental investment property), but you must "recapture" the depreciation allowed or allowable. That is, you must report the depreciation taken (or that you should have taken), over the years, as income on your tax return in the year you sold it. It essentially reduces your capital loss, but the capital loss and recapture are reported in different places on the tax return.

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

- Wages & Income

Scroll down to:

-Investment Income

-Stocks, mutual funds, Bonds, Other (Real estate is other)

Answer no, when asked if you got a 1099-B. then follow the interview. When asked if used for business or rental, check "other investment purpose"

topic 1099s sale of home in Deductions & credits

1099s sale of home

There is no federal inheritance tax. Sales of real estate...