Inheritance

[Mike203]

My father passed in 2019 November in Indiana. We sold his house in Indiana in March of 2020. I received about $60,000.00 as the selling price was divided 4 ways. I live and work in Kentucky and file Kentucky income tax forms. My 3 siblings all reside in Indiana. Do I need to file an Indiana income tax form for 2020?

[Hal_Al]

Q.   Do I need to file an Indiana income tax form for 2020?

A.. Only if you show a gain on the sale and that's unlikely.

  The $60, 000 you received from the proceeds is not income.  Only the gain, if any, is income. Your cost basis in an inherited home is the fair market value on the date of death.  Considering the expenses of sale, most people show a loss.  If there was no personal use of the home, it is considered investment property and the loss is deductible on your federal and KY return.  But, there is no need, or requirement,  to file an IN return, if you are showing a loss.