Mobile Home left to My Brother and I when Mom and then Step-Dad Passed in 2024

[TheShankadelic]

My brother and I were left a Mobile Home that belonged to my Mother and Step-Father.  After they both passed we were left with the mobile home in a Mobile Home Park (meaning they just leased the plot of land) it sat on.

We had to go through the Michigan to have the title transferred to both of our names.  The Company that owned the Mobile Home park offered to buy the mobile home and we agreed to sell it for 12K (they originally offered 10K) - it was probably a good 30+ years old so I don't know if the 10K is FMV or what - it was never appraised as far as I know.  We agreed to the sale once the title was converted to our names and the company sent us each a check for 6K each.  We have seen in some cases that this is treated like a vehicle since it has a title but in other areas I've seen where taxes have to be paid.  Do we have to pay taxes on the 6K we each received and if so, how do we report this (what form, etc.  I have Turbo Tax Deluxe downloaded on my work station).  Prior to the deaths, we were not on the Title, we were only put on the Title after death based on us having been left the mobile home in the will.  Any help, direction etc. would be appreciated.  We have not received any type of tax form from the company that bought the mobile home.  Thanks.

[KrisD15 · Accepted solution]

If the mobile home was inherited and then sold soon after, there would be no tax owed on the proceeds. You needn't enter the sale. 

There is no tax on inherited property. You get the "basis" of the Fair Market Value on the date of death. If the Mobile Home Park paid 12,000, that can be assumed as the Fair Market Value. 

Since your "basis" (cost) is Fair Market Value, and it was sold at Fair Market Value, you have zero gain. 

Only when inherited property is held and sold later at a profit (more than FMV on date of death) could there be capital gain. 

Keep any records you have with your tax fie, but you needn't enter anything into TurboTax.

Inheritances 

[TheShankadelic]

KrisD15,

Thanks so much for the concise answer to our Question - it is much appreciated.

Take care!!!