If I inherited property with a fair market value o...
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
TurboTax has you covered during Covid. Get the latest second stimulus info here.
cancel
Showing results for 
Search instead for 
Did you mean: 
New Member

If I inherited property with a fair market value of 150,000 but sold it at it's tax value of 123500, would this be considered a loss?

 
3 Replies
Expert Alumni

If I inherited property with a fair market value of 150,000 but sold it at it's tax value of 123500, would this be considered a loss?

Assuming you did not use the home as your personal residence, if you sell an inherited home for less than its stepped-up basis, you have a capital loss that can be deducted.  You can deduct your capital loss from any of your capital gains.  However, only $3,000 of such losses can be deducted against your ordinary income per year. Any excess must be carried over to future years to be deducted.

 

If you used the house as your personal residence, you will not be able to deduct any of the capital loss.  

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Level 11

If I inherited property with a fair market value of 150,000 but sold it at it's tax value of 123500, would this be considered a loss?

It is a loss, but whether or not that loss is deductible or not depends on the circumstances.

 

If it was valued at $150,000, why was it sold for much less than that?

Employee Tax Expert

If I inherited property with a fair market value of 150,000 but sold it at it's tax value of 123500, would this be considered a loss?

Publication 544 (2019), Sales and Other Dispositions of ... has the answers. Why it was sold, to whom, what you did with the money, can affect you.

For example, the house is often sold to a family member at a lower price. This is not a loss for you.

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Dynamic Ads
v
Privacy Settings