@Makeitmore Gift tax (if any) would be paid by the person making the gift, not the receiving person.
Inherited property receives a stepped-up basis to the Fair Market Value (FMV) at the date of death. You would pay capital gains on any appreciation the property might have had from the date of death to the date of the sale. Generally, if you have sold the property close to the date of death there won't be much of any capital gain taxes to be paid. However, you do report the sale - gain or not. See below for reference.
There is nothing I've ever found in tax code saying original owner.
I have in fact seen the word owner only.
The cost basis is always bumped up to reduce tax liability. That is the exact purpose from Congress.
Not once but every time.
Income received in trusts are taxed
I disagree totally. The assets cost basis is bumped up on the date of the owners death.
That is Congress intent to limit liability.
I have only seen in tax code the word owner.
Some people think it's original owner.
What's the point of limiting the liability once. It also limits the amount you can right off as a loss.
Show me the code.
Absolutely wrong. It is theFMV of the new owner
Tax code says owner not original.
The whole purpose from Congress is to limit liability on the beneficiary.
What your saying is limiting it on the first beneficiary. Again nothing in code states this.
Subject to interpretation. Be
You do not pay tax on the full amount that you received. You pay tax only on any gain from the transaction. The gain (or loss) is calculated by subtracting your net proceeds from the Fair Market Value (FMV) of the property.
The FMV that you will use is the value of the property on the date that you received it (if it was transferred prior to her death, as a gift) or the date of your mother's death (if inherited.)
You should contact a real estate professional for some guidance in determining the approximate value. Once you have determined the FMV, here is how you will report the sale in TurboTax:
If there is a loss on the property, it will not be deductible.
Please accept my condolences on the loss of your mother.