Myself and two siblings inherited a house from my father. We sold the house for the exact amount it appraised for. Do I have to file any forms with the IRS?

[Cindy0H · Accepted solution]

You would not need to file any forms with the IRS unless you received a form 1099 from the sale. The only time you would have to report it is if there was a capital gain. There was not in your case.

To know the actual amount of the capital gain or loss on this sale, you will need to know not only your sale's proceeds but also your basis in this inherited property. Your basis in an inherited property is usually the Fair Market Value (FMV) at the time of inheritance plus any capital improvements made to the property since inheriting it.

An appraised value is an expert’s best estimation of what the entity is worth, while the fair market value is what it should sell for. The appraised value and the fair market value, in theory, should come out to the same amount.

[jestak]

Thank you so very much for taking the time to answer my question. I appreciate it very much. Again, thank you.