1099-S for inherited property

[suzukini]

I'll make this brief as possible.  Our father passed away Jan 2022.  House was purchased new by parents in 1976 for $60,000.00.  We remodeled the house and sold in Sept 2022 for $275,000.00.  With all deductions, etc, final closing check was right under $250,000.00 and money is currently in the estate account.  (Father passed away with no will).  Houses in the neighborhood have FMV ranging from $222,000.00 to $275,000.00.  I don't have a copy of the appraisal from the date of the sale but can probably get one.   We have not received a 1099-S and frankly I don't know if we are supposed to.   If we do not receive a 1099-S, do we need to tick the box for house sale on Turbo Tax?  Thank you for any help you can offer.

[Anonymous_ · Accepted solution]

I am sorry for your loss,

The basis of the house for the purposes of the sale is the fair market value on the date of death od the decedent (your father in January of 2022) plus the costs of the improvements made after death.

You need to establish the basis on the date of death and the IRS is only required to accept an appraisal from a certified real estate appraiser (although you may be able to slip by with a competitive market analysis from a local real estate broker).

If the estate sold the house, then the estate would be required to file Form 1041.

See https://www.irs.gov/instructions/i1041#en_US_2022_publink1000285942

[HelenC12]

Form 1099-S is an informational form and even if you don't receive one, you still have to report the sale. 

• To enter the sale of an inherited the home, please see Where do I enter the sale of a second home, an inherited home, or land on my 2022 taxes?

On the OK, let's start with one investment type screen, select Other (and second homes, personal items) 1099-S .

[Edited 02-02-2023|6:35 am PST]

[suzukini]

Thank you for your information.  I have contacted the closing attorney and my real estate agent to try and get the information needed.