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?

jldu4pe-bellsouth-net · ‎June 6, 2019

RichardG · ‎June 6, 2019

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

RichardG · ‎June 6, 2019

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

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?