I inherited a home im selling to my aunt who owns the other percent. Do i claim on taxes & have to pay taxes on it? I live and property is in SC.
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I inherited a home im selling to my aunt who owns the other percent. Do i claim on taxes & have to pay taxes on it? I live and property is in SC.

It is 22k and i dont want to spend it paying off bills and then owe the irs for taxes on the money. 

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Level 15

I inherited a home im selling to my aunt who owns the other percent. Do i claim on taxes & have to pay taxes on it? I live and property is in SC.

Simple answer: no.

The cost basis in inherited property, "steps up" to current value on the date of death. So, there is seldom any reportable capital gain when the property is sold. Furthermore, a capital loss, on the sale of personal use property, is not deductible.

The problem is if a form 1099-S is issue for the sale. In that case, the IRS will expect the sale to be reported on your tax return.  Then you report your cost basis to be the same as the sale amount to show zero capital gain.

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Level 15

I inherited a home im selling to my aunt who owns the other percent. Do i claim on taxes & have to pay taxes on it? I live and property is in SC.

You are asking from TT Live, for which you are paying extra:

https://ttlc.intuit.com/questions/4124827-how-do-i-connect-with-a-tax-expert-in-turbotax-live



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