sale of my portion of inherited building

[oldgriz]

My brother and I inherited a commercial building after my mother passed. He is buying my share of the property. How do I handle this from a tax situation. Property is located in Calif as are both of us.

[KrisD15]

Unless the property has changed in value since you inherited it, there is no needed reporting. 

If the value has gone up, (and your brother is paying you MORE than what your half was worth when you inherited it) you'll have a long-term capital gain.

If less, you have a loss. 

For example, you and your brother inherited a building valued at 200,000.  

You sell your half soon after for 100,000. 

Nothing for you to report.

He has property with a cost basis of 200,000. 

For example, you and your brother inherited a building valued at 200,000.

The value increases to 250,000  

You sell your half to your brother for 125,000. 

You have a 25,000 Long Term Capital Gain.

Your brother has property with a cost basis of 225,000

[oldgriz]

Thanks Kris. I appreciate the prompt reply and thorough explanation

Allen