I jointly inherited my parents home in May 2018 with three siblings (25% equal share). We sold it 5 months later and split the net proceeds (~$60,000) equally. The FMV at time of inheritance was $84,000. Nowhere in Turbo Tax (Deluxe) is it asking me to explain that my personal net proceeds are only 25% of the total net proceed, or alternatively, that my cost basis in the house is only 25% of the original FMV. Should I report the FMV of my 25% of ownership to account for this? (i.e. $21,000)
Yes, you should report your 25% of FMV and proceeds on your taxes as should your siblings. There instructions below on how to enter the sale. As an aside, be careful with taking the capital loss. That is a pretty drastic drop in value in a period of 5 months.
Yes, you should report your 25% of FMV and proceeds on your taxes as should your siblings. There instructions below on how to enter the sale. As an aside, be careful with taking the capital loss. That is a pretty drastic drop in value in a period of 5 months.
It wasn't a loss - the sale price was also $84,000. The $60,000 net proceeds are after the sale expenses and a $18,000 lien on the property. Should that not be part of this equation?