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Level 2
posted May 1, 2021 7:57:36 AM

What forms are used to report the sale of inherited real estate?

If price sold and cost basis are the same, what IRS forms are required?

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1 Best answer
Level 15
May 1, 2021 8:18:27 AM

No special forms are required for the sale of inherited property.  You use for 8949 and Schedule D, the same as for the sale of any other capital asset (stocks, bonds, mutual funds, real estate).

 

For date bought/acquired, type *inherited*.   Type in the same numbers for  price sold and cost basis no special forms are needed.  If there was no personal use, between inheriting the property and selling it, you are allowed to claim a capital loss.  Due to expenses of selling, the sale of inherited property, shortly after inheriting it,  usually results in a loss.

3 Replies
Level 15
May 1, 2021 8:18:27 AM

No special forms are required for the sale of inherited property.  You use for 8949 and Schedule D, the same as for the sale of any other capital asset (stocks, bonds, mutual funds, real estate).

 

For date bought/acquired, type *inherited*.   Type in the same numbers for  price sold and cost basis no special forms are needed.  If there was no personal use, between inheriting the property and selling it, you are allowed to claim a capital loss.  Due to expenses of selling, the sale of inherited property, shortly after inheriting it,  usually results in a loss.

Level 15
May 1, 2021 8:46:31 AM

You should have gotten a form 1099-S at the closing to use for the sale ... the Sch D must reflect that sale price amount or risk getting an IRS letter.  

Level 2
May 2, 2021 6:04:04 AM

Thanks Much, easier than I thought