topic Inherited home in Retirement tax questions

Inherited home

hogebdg — Tue, 28 Jan 2025 17:34:10 GMT

3 of us inherited a home in Feb 2024. We sold the home in July 2024. We each got 1/3 of the proceeds which was $33,333.34 reported on 1099-s. The fair market value was $110,000. I entered

Type of investment - Other

How did I receive it - I inherited it

Descrip - inherited property/home 33.3% share of home

Date disposed - 07/03/2024

Proceeds - $33,333.34

FMV - $36,666.67

Is this the correct way to enter the info?

Re: Inherited home

MayaD — Tue, 28 Jan 2025 17:53:24 GMT

It is the correct way to report it, however, you can deduct your share of the selling expenses from the gross proceed.

Sales expenses include:

commissions
appraisal fees
broker's fees
legal fees
advertising fees
home inspection reports
title insurance
transfer taxes or fees
geological surveys
loan charges (points) or other fees paid on the buyer's behalf
any fees for a service that helped you sell your home without a broker (listing fees, promotional fliers, etc.)

Re: Inherited home

TheRock1 — Sat, 15 Feb 2025 21:22:13 GMT

Would the property taxes for the current year paid by the seller which were deducted from the selling price in the real estate transaction be considered sales expenses that can be included on the tax return expenses?

Re: Inherited home

RobertB4444 — Mon, 17 Feb 2025 17:48:12 GMT

Yes. If you are not deducting the property taxes anywhere else then you can deduct property taxes paid at closing as "Sales Expenses".

@TheRock1