How to claim sale of inherited house 3 months after dads death. Sold for 150000 but received 135820 after commission & closing cost?

[PaulaM · Accepted solution]

I'm sorry for your father's passing.

Report the sale in the Investment section and choose 'Everything else' for type of investment sold.

Then enter the net proceeds ($135,820) from the sale. Continue on to enter that the property was inherited and the date of your father's passing, and the FMV at the date of his passing. Continue to the gain/loss computation. There should be be little to no gain computed if you sold the home 3 months after his passing.

If you inherited this property with other's, then enter your proportionate share of the basis and sale proceeds. For example: You had 2 other siblings that were also heirs. Each of you would record your 1/3 share of basis and net proceeds.

If you received a 1099-S form for the sale, make certain that it is for your share only. If not, contact the issuer for a corrected form.

[carolina1959]

thanks, so would the difference in sell price 135,180 - fmw 150000 result in a capital loss?

[PaulaM]

The $135,820 is your net sale proceeds. FMV is the value at the time of your dad's death. If FMV at date of death was $150,000 then you do have a loss. It is recorded as a sale but the personal loss is not taken. It's recorded as a zero loss.