topic Capital gains on the sale of deceased parents house that was quit claim deeded in Investors & landlords

Capital gains on the sale of deceased parents house that was quit claim deeded

Musahale — Fri, 07 Mar 2025 21:54:25 GMT

Can I use Turbo Tax for a house that was sold in 2024 that was quit claim deeded to my brother and I in 2007. Mother passed in October 2023? Not sure how to calculate the capital gains

Re: Capital gains on the sale of deceased parents house that was quit claim deeded

RobertB4444 — Fri, 07 Mar 2025 22:15:23 GMT

Yes, you can. TurboTax can handle the sale.

First, though, was this house a primary residence for you and/or your brother since 2007? If it was then you can enter it into TurboTax as a sale of a primary residence.

If it was not OR if it was but it has been more than five years since it was a primary residence then you will have to sell it as the sale of a second home. All of the gain on the sale will be taxable.

Because your mother quit claimed the house over to you in 2007 the value that the house has - referred to as your basis - is the value that your mother paid for it when she originally bought it plus the cost of any major repairs or renovations or additions since then. You're going to enter this basis amount into TurboTax in order for the system to be able to figure out how much gain you have on the sale of the house.

@Musahale

Re: Capital gains on the sale of deceased parents house that was quit claim deeded

Musahale — Fri, 07 Mar 2025 23:06:54 GMT

Thank you for the info. Does the cost of major repairs or add ons increase or decrease the tax owed?

Re: Capital gains on the sale of deceased parents house that was quit claim deeded

DaveF1006 — Fri, 07 Mar 2025 23:11:04 GMT

Repairs, major or minor are not deductible, but improvements such as add-ons will add to the basis of the house to reduce your capital gains from the sale.