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craiglisa1994
New Member

1099-S Received for Sale of Deceased Parents Home...Taxable?

Inherited proceeds from sale of parent's home in 2015 after they passed.  Is inheritance (less than $50K) taxable?
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PaulaM
Employee Tax Expert

1099-S Received for Sale of Deceased Parents Home...Taxable?

You will enter the sale of an inherited home in the Investment section. Gain/loss will be computed once you enter the fair market value of the home on the date the deceased passed away. Usually, you receive a stepped up basis in the property and when sold, little or no gain will taxable.

Ex: Sales Price: $85,000, FMV at date of deceased passage, $85,000 = no gain. So gain will depend on if the value has increased from passage to sale.

To get started, in Wages & Income section, choose Investment Income>Stocks, Mutual Funds, Bonds, Other>Start/Update. Continue to Choose the type of investment you sold and continue. Enter sales details and continue to Tell Us How You Acquired This Home. Go forth from there to indicate Inheritance and date of death. see attachment.

 

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PaulaM
Employee Tax Expert

1099-S Received for Sale of Deceased Parents Home...Taxable?

You will enter the sale of an inherited home in the Investment section. Gain/loss will be computed once you enter the fair market value of the home on the date the deceased passed away. Usually, you receive a stepped up basis in the property and when sold, little or no gain will taxable.

Ex: Sales Price: $85,000, FMV at date of deceased passage, $85,000 = no gain. So gain will depend on if the value has increased from passage to sale.

To get started, in Wages & Income section, choose Investment Income>Stocks, Mutual Funds, Bonds, Other>Start/Update. Continue to Choose the type of investment you sold and continue. Enter sales details and continue to Tell Us How You Acquired This Home. Go forth from there to indicate Inheritance and date of death. see attachment.

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

indepencenceday
New Member

1099-S Received for Sale of Deceased Parents Home...Taxable?

i sold my inherited mothers home for 148,000.  taxed at $120,000.  numerous

 repairs were made to home prior to sale and of course there were about 10,000 is agents fees, etc.  what forms do i need?

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