My parents are deceased and in 2017 we sold there house that was left to me and my two siblings. We received a 1099 S from a Lawyer involved with the closing. I follow the below steps and I ended up with no taxes being taken out from what I earned from my inheritance. Found this a little concerning as you always pay taxes nothing is for free so I feel I did something wrong. Below is the instructions entered in the investment section of Turbo Tax. Follow these instructions:
Open your return in Turbo Tax. (To do this, sign in to Turbo Tax and select Take me to my return button.) In the search box, search for sold second home (use this exact phrase) and then select the "Jump to" link in the search results. Answer Yes on the Did You Sell Any Investments in 2017? screen. If you land on the Here's the investment sales info we have so far screen, select Add More Sales. Answer No to the 1099-B question. On the next screen, select Second Home (choose this also for inherited homes) or Land. Select Continue. Follow the on-screen instructions to completion.
The House was worth $180,000 the three of us each received $60,000 did I do this correctly and will not pay any taxes on my inheritance?
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You need to make sure you enter the cost basis for the fair market value at the time your parents died.
If you didn't inherit until the second parent died, use the date of that death to determine. If you don't know, the local property assessor will have a public record of the tax value.
Therefore, if the home was sold for $180,000 and had a FMV of $180,000, there is no capital gain.
You need to make sure you enter the cost basis for the fair market value at the time your parents died.
If you didn't inherit until the second parent died, use the date of that death to determine. If you don't know, the local property assessor will have a public record of the tax value.
Therefore, if the home was sold for $180,000 and had a FMV of $180,000, there is no capital gain.
received an inheritance from a house my brother owned. He sold his second home and split it 3 ways with his two siblings. Do I have to pay tax on my one third of the house?
Which was it? Did you "receive an inheritance" Or did you brother "sell a house and give you a third"?
Sale of Inherited Home. Sales of real estate are usually reportable on your tax return, especially if a form 1099-S is issued. There will most likely be no capital gain and therefore no tax. Any capital gain would be on the difference between what the house was worth on the date of the decedent's death (your "cost basis") and what the house sold for. You would report only your third of the sale and your third of the cost basis.
If you brother was the owner of the house (e.g. only he inherited title), then you do not report your third as income. You only received a gift and that is not taxable. Your brother may have to file a gift tax* return.
*"Gift Tax" is somewhat of a misnomer. Even though a gift tax return may be required, very few people ever actually pay federal gift tax. The purpose of the gift tax return is usually only to document a reduction in the allowable estate tax exemption.
See https://turbotax.intuit.com/tax-tools/tax-tips/Tax-Planning-and-Checklists/The-Gift-Tax-Made-Simple/...
I am exactly in the same situation, but I am still a little confused.
My last living parent pasted away this year in March and me and my two other siblings inherited the house.
We officially sold the house on August.
The cost basis is $300,000. That was the market and agreed upon price that we sold it for.
Me and my two other siblings each got $100,000.
My issue is when I entered the "Sale proceeds" of $100,000 and entered the "Cost or other basis" of $300,000. the summary page that says "Here's all the investment accounts we have so far" it states that I have a (Loss) of $200,000.
How can I have a (loss) of $200,000 when the house was inherited and I didn't put any money into it as it wasn't mine to start with?
Also when I continue to do my State's income tax on the section that says "Any Short-term Capital Loss Differences? It states below it 'You reported a short-term capital losses of -$200,000 on your federal return.
Is this something to worry about on next year's tax filings or should I just ignore this?
Enter $100,000 as your (share of the) cost basis; just like you entered $100,000 as your share of the sale price.
Thank you. I will to that and it does makes sense.
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