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This would be reported as if it were the sale of an "investment" property. The sale of investment property is reported as Investment Income (Stocks, Mutual Funds, Bonds, Other) under Wages & Income in the Federal Taxes section of TurboTax.
Remember that the house received a "step up" in "basis" to the market value (or what it could be sold for) on the date of your father's death.
If you were the only inheritor then the entire transaction is reported on your return. If you had to divide it with other heirs, each of you will report only your percentage of the sale.
When you enter the sale of your inherited property, the "Selling Price" is the $150,000. The "Cost or Other Basis" is the stepped up value I mentioned above, plus the "costs of the sale" - those figures that brought down the amount of cash you received. TurboTax will walk you through it. You will not pay tax on the full $150,000, but only if you made a "gain" on the sale of the house.
My sympathy on the loss of your father.
[ edited 2/12/18 | 6:40 PM ]
This would be reported as if it were the sale of an "investment" property. The sale of investment property is reported as Investment Income (Stocks, Mutual Funds, Bonds, Other) under Wages & Income in the Federal Taxes section of TurboTax.
Remember that the house received a "step up" in "basis" to the market value (or what it could be sold for) on the date of your father's death.
If you were the only inheritor then the entire transaction is reported on your return. If you had to divide it with other heirs, each of you will report only your percentage of the sale.
When you enter the sale of your inherited property, the "Selling Price" is the $150,000. The "Cost or Other Basis" is the stepped up value I mentioned above, plus the "costs of the sale" - those figures that brought down the amount of cash you received. TurboTax will walk you through it. You will not pay tax on the full $150,000, but only if you made a "gain" on the sale of the house.
My sympathy on the loss of your father.
[ edited 2/12/18 | 6:40 PM ]
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