Sibling Buyout & Capital Gains Tax

My brother and I inherited our mother’s home after she passed away and we decided to do a sibling buyout. He bought me out for less that half of what the property is valued at and he is keeping the home to live in with his family. Am I subject to capital gains tax with the buyout money I received from my brother?

posted

Your cost basis is half the value of the house and you received less than that so you made no profit and so owe no tax on the sale.

also you do not have a deductible loss because the sale was between related parties. Without knowing the amount involved, whether this was handled so a 1099-S will be issued, can't say what to do as wether or not to report on your tax return.