turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

If a person receives property through inheritance, than sells the land, is the money taxable.

Is the, $25000 inherated, from the sale of land, subject to being taxed.
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Reply
MayaD
Employee Tax Expert

If a person receives property through inheritance, than sells the land, is the money taxable.

If you sold the inherited land for more than your basis, you have a taxable gain.

The basis of property inherited from a decedent is generally one of the following:

  • The fair market value (FMV) of the property on the date of the decedent's death (whether or not the executor of the estate files an estate tax return (Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return)).
  • The FMV of the property on the alternate valuation date, but only if the executor of the estate files an estate tax return (Form 706) and elects to use the alternate valuation on that return. irs.gov

 

In TurboTax you would  report it as investment sale.

  1. Since you did not receive a 1099-B, answer “no” to the 1099-B question or select skip Import 
  2. Select Other for What type of investment did you sell?
  3. Select I inherited for How did you receive this investment? 

[Edited, 02/14/2025| 01:49 PM, PST]

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question