I recently received 54k by removing my name from a property that I was part of through my last father’s probate. Will I owe taxes on that amount? FL resident.
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zina1029
New Member

I recently received 54k by removing my name from a property that I was part of through my last father’s probate. Will I owe taxes on that amount? FL resident.

 
3 Replies
DS30
New Member

I recently received 54k by removing my name from a property that I was part of through my last father’s probate. Will I owe taxes on that amount? FL resident.

What do you mean by "removing my name"? Were you bought out of the property?
zina1029
New Member

I recently received 54k by removing my name from a property that I was part of through my last father’s probate. Will I owe taxes on that amount? FL resident.

Yes, my brother -who was the other probate beneficiary- applied for and received an equity loan to buy me out.
DS30
New Member

I recently received 54k by removing my name from a property that I was part of through my last father’s probate. Will I owe taxes on that amount? FL resident.

It depends on your basis in the inherited property.

You will only need to pay capital gains taxes on the sale of your proportional share of the inherited property if you sold the property for a gain. So if you and your brother inherited the house 50/50, then your basis in the inherited property will be 50% of the FMV of the property at time of death. Depending on how much your brother paid to buy out your share will determine your gain or loss on the sale. Just be aware that since you are selling to a relative, the IRS may need proof of an arm's-length transaction if you sell your share at a loss and you will only report this capital loss if the property was not considered personal use property (such as an inherited rental property) between the date of inheritance and the date of sale.

Also, if you have a capital gain on the sale and the property is located in a state of which you are not a resident, you may have to file a nonresident state return in that other state regarding any capital gain.

To enter the sale of a capital asset in TurboTax, log into your tax return (for TurboTax Online sign-in, click Here and click on "Take me to my return") type "investment sales" in the search bar then select "jump to investment sales". TurboTax will guide you in entering this information.

 

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