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New Member
posted Jun 6, 2019 7:06:41 AM

I'm unemployed/retired collecting social security and sold inherited property at a loss within the same year of receiving it. Do I have to pay tax on this sale?

I'm retired with Social Security as my only source of income.  Through probate, my brother and I received my fathers home worth $180,000.  My brother and I sold the home for a loss within 4 months of finalizing for $125,000 and split the sale 50/50.  Do I need to pay taxes on this sale?

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1 Best answer
Level 15
Jun 6, 2019 7:06:42 AM

No. You had a loss on the sale. The inheritance, itself is not taxable. The loss on the sale, may actually be deductible, depending on how the property was used, while waiting to be sold and who was sold to.

But, if you only have social security, you will have no other taxable income to deduct the lost from. 

3 Replies
Level 15
Jun 6, 2019 7:06:42 AM

No. You had a loss on the sale. The inheritance, itself is not taxable. The loss on the sale, may actually be deductible, depending on how the property was used, while waiting to be sold and who was sold to.

But, if you only have social security, you will have no other taxable income to deduct the lost from. 

New Member
Jun 6, 2019 7:06:43 AM

Follow up Q’s:   So I will not have to file taxes nor fill out a schedule D form?

Level 15
Jun 6, 2019 7:06:45 AM

Correct, unless you get a form 1099-S for the sale. Check you closing documents.