My mother passed in 2017. I kept up her co-op apt maintenance since she left it to me I'm her will - I never moved into the unit and sold it in 2021. Tax implications?

[vkri2]

In 2021, I sold my mother's NYC (Queens) co-op unit that she left to me in her will when she passed in 2017. I never moved into the place nor transferred it to my name - I was still deciding what to do in 2019 and finally put it up for sale - then COVID hit and it stayed on the market for two years.

I'm unsure what the value was in 2017 when she passed but I'm sure it was MORE than what I sold for. How do I retroactively prove cost basis?

[HelenC12]

Whatever amount you decide on, document how you came up with that value and keep it with your tax records.

The "fair market value" is the amount a willing buyer would pay and a willing seller would accept when neither is compelled to buy or sell, in an "arm's length" transaction. 

You can get an idea of the fair market value of your home by using a combination of these options:

• Using the assessed value on your annual property tax bill

• Using the value on your Homeowner's Insurance policy  

• Getting an estimate from a realtor for a comparison of condo's that sold in 2017 around the date of your mother's passing. 

• Check out Zillow.com, Realtor or any other online sites  as a comparison tool with the above options.

Additional information: Where do I enter the sale of a second home, an inherited home, or land on my 2021 taxes?

[Hal_Al]

@vkri2  said "I'm unsure what the value was in 2017 when she passed but I'm sure it was MORE than what I sold for. "

Your next question should be: is the capital loss deductible?

A capital loss on personal use property is NOT deductible.  A capital loss on investment property is deductible.  An inherited home, that sits idle, between inheritance and sale, is considered investment property.  

[vkri2]

Many thanks, @HelenC12 ! Your answer helped a lot 🙂

I’ll be sure to document everything and keep records in case anyone from the tax agency asks about this.

[vkri2]

Wow! Thank you @Hal_Al ! This isn’t something I thought of and am grateful you brought it up for me 🙂

Yes, i did think about renting the unit out. It’s in a good, safe neighborhood and close to public transit in Queens and actually had people ask about it. But the co-op board was putting up some resistance and I was reticent towards the ideas of long distance land lord (i no longer live in NYC). After a couple of years, i decided to move on and just sell - just as the COVID situation hit NYC pretty hard and all real estate showings came to a halt.

To your point, I never moved in or even transferred the unit to my name. I just kept up with the monthly maintenance and maybe crashed there a couple of times when I visited friends and family.

Thank you much for bringing this up. This will be a loss for me and I’ll be sure to classify it as such on my tax return.