I inherited a house 3/31/17 and sold it 8/31/17. It was treated as an investment property and not used for any personal use. My costs during that time included misc. repair costs, monthly HOA fees, garbage pickup, gardener fees, water, gas and electric, pest control, homeowner's insurance, appraisal fee on 3/31/17, and recorder fees to transfer title to me. I have received a 1099-S for the sale on 8/31/17. Can any of my costs be added to the basis?
Ok, so you know your initial cost is the Fair Market Value on the date of death (3-31-2017).
Then if those fees were paid by you and not by the estate and deducted on a 1041 Estate return, they can be considered selling expenses (cost to maintain the property to get it ready and able to sell).
The transfer fee gets added to your basis and also the repairs.
Comes out same regardless.
As it will be Sales Price, less selling expenses, less cost basis equals profit or loss on the sale of the home.
Make sure you mark in TurboTax that this was acquired as inherited property as it gets more favorable tax treatment. (Long-term capital gain)
To enter your Investments sold
Click on Federal Taxes
Click on Wages and Income
Click on I'll choose what I work on
Scroll down to Investments
On Stocks, Bonds, Other, click the start or update button
Ok, so you know your initial cost is the Fair Market Value on the date of death (3-31-2017).
Then if those fees were paid by you and not by the estate and deducted on a 1041 Estate return, they can be considered selling expenses (cost to maintain the property to get it ready and able to sell).
The transfer fee gets added to your basis and also the repairs.
Comes out same regardless.
As it will be Sales Price, less selling expenses, less cost basis equals profit or loss on the sale of the home.
Make sure you mark in TurboTax that this was acquired as inherited property as it gets more favorable tax treatment. (Long-term capital gain)
To enter your Investments sold
Click on Federal Taxes
Click on Wages and Income
Click on I'll choose what I work on
Scroll down to Investments
On Stocks, Bonds, Other, click the start or update button