I inherited house so no cost - rented for 27 years claiming depreciation each year - if I sell do I pay taxes on the proceeds.
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Yes the sale of a rental property would be reported on your tax return, and a gain on the sale will be taxable to you and a loss would be deductible. It would be income received during the year.
The basis of inherited property is generally the fair market value on the date of death or the alternate valuation date.
So, your cost basis at the sale, would be the fair market value on the date of death, adjusted by improvements that extend its life, and reduced by the depreciation taken, etc.
You would report the depreciable asset sold in the section for the rental property where you have been reporting the income each year and the depreciation and other expenses each year.
Yes the sale of a rental property would be reported on your tax return, and a gain on the sale will be taxable to you and a loss would be deductible. It would be income received during the year.
The basis of inherited property is generally the fair market value on the date of death or the alternate valuation date.
So, your cost basis at the sale, would be the fair market value on the date of death, adjusted by improvements that extend its life, and reduced by the depreciation taken, etc.
You would report the depreciable asset sold in the section for the rental property where you have been reporting the income each year and the depreciation and other expenses each year.
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