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Sold inherited home to one of four siblings. The basis of the home at succession last year was $95,000 and we sold the home to a sibling for $80,000.

After a gift of equity of $6500 the net proceeds to three siblings was $73,500 or $$24,500 each. So how do I enter net proceeds in Turbotax and how do I enter market value?
Is total net proceeds divided by three and total value divided by four?
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DDollar
Expert Alumni

Sold inherited home to one of four siblings. The basis of the home at succession last year was $95,000 and we sold the home to a sibling for $80,000.

Your cost basis in the home was the value of the home on the date of death of the person you inherited it from.  You do not have to pay taxes on an inheritance.  So, if you sold the house for more than it was worth when you inherited it, you would have a gain.  If you sold it for less, you would have a loss you cannot deduct.  If you intentionally sold it below the marked value, then you made a gift of to the purchaser for the amount between the sales price and market value.  If there was no gain and you did not receive a 1099-S, you don't need to report the sale.  If you do report the sale, just use the same amount for the cost basis and proceeds.

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DDollar
Expert Alumni

Sold inherited home to one of four siblings. The basis of the home at succession last year was $95,000 and we sold the home to a sibling for $80,000.

Your cost basis in the home was the value of the home on the date of death of the person you inherited it from.  You do not have to pay taxes on an inheritance.  So, if you sold the house for more than it was worth when you inherited it, you would have a gain.  If you sold it for less, you would have a loss you cannot deduct.  If you intentionally sold it below the marked value, then you made a gift of to the purchaser for the amount between the sales price and market value.  If there was no gain and you did not receive a 1099-S, you don't need to report the sale.  If you do report the sale, just use the same amount for the cost basis and proceeds.

Sold inherited home to one of four siblings. The basis of the home at succession last year was $95,000 and we sold the home to a sibling for $80,000.

Thanks for your reply TurboTaxDavid, I'm still a little fuzzy about the actual amounts to enter if the sale is reported by each of the three siblings that shared the sale proceeds from our other sibling. Would net proceeds be divided by three and total value at death be divided by four to make entries in turbotax?
DDollar
Expert Alumni

Sold inherited home to one of four siblings. The basis of the home at succession last year was $95,000 and we sold the home to a sibling for $80,000.

Yes, if all 4 of you inherited, and then 3 of 4 sold to the fourth.  If the house was worth $100,000 then each of you inherited $25K.  If three of you then each sold your interest in the house to the fourth for $90K, each of the three would have sold their $25K interest for $30K and would have a $5,000 gain.  You'll have to adjust the numbers based on the facts of your situation.

Sold inherited home to one of four siblings. The basis of the home at succession last year was $95,000 and we sold the home to a sibling for $80,000.

Much appreciated TurboTaxDavid;  that is what I needed to understand.
DDollar
Expert Alumni

Sold inherited home to one of four siblings. The basis of the home at succession last year was $95,000 and we sold the home to a sibling for $80,000.

Glad I could help.  Thanks for using TurboTax!
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