Solved: 7 children inherit house after mother's death. House was appraised before flood waters @ 161000. After flood house sold for $70000, each child received $10000. Taxes?
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
TurboTax has you covered during Covid. Get the latest second stimulus info here.
cancel
Showing results for 
Search instead for 
Did you mean: 
New Member

7 children inherit house after mother's death. House was appraised before flood waters @ 161000. After flood house sold for $70000, each child received $10000. Taxes?

 
1 Best answer

Accepted Solutions
New Member

7 children inherit house after mother's death. House was appraised before flood waters @ 161000. After flood house sold for $70000, each child received $10000. Taxes?

Your family's basis in the property is $161,000 (I assume the appraisal was done around the time of death), and the sale proceeds are $70,000, so there is a loss here of $91,000.  Due to the flood, this is a casualty loss if there was no insurance coverage to fully compensate the difference.

The children should claim their share of the loss ($13,000) as casualty losses.  Please read on for more help and check out this IRS website as well.  https://www.irs.gov/taxtopics/tc515.html

https://ttlc.intuit.com/replies/3301959

View solution in original post

1 Reply
New Member

7 children inherit house after mother's death. House was appraised before flood waters @ 161000. After flood house sold for $70000, each child received $10000. Taxes?

Your family's basis in the property is $161,000 (I assume the appraisal was done around the time of death), and the sale proceeds are $70,000, so there is a loss here of $91,000.  Due to the flood, this is a casualty loss if there was no insurance coverage to fully compensate the difference.

The children should claim their share of the loss ($13,000) as casualty losses.  Please read on for more help and check out this IRS website as well.  https://www.irs.gov/taxtopics/tc515.html

https://ttlc.intuit.com/replies/3301959

View solution in original post

Dynamic Ads
v
Privacy Settings