I live in AZ. My brother sold our mom's house in CO and gave me a portion. I'd like to pay the taxes on it this month. What the tax will be and where to send it?

[Anonymous_ · Accepted solution]

You need to check with your brother to see whether he is planning to pay any tax due on any gain that needs to be reported from the sale.

Otherwise, if your brother received 100% of the proceeds from the sale, deposited those proceeds in his account, and then gave you a share, he essentially gave you a gift.

The recipient of a gift (the donee) does not need to report the gift on any tax return. The person who gives the gift (the donor) may have to file a gift tax return.

[rjs]

Who actually owned the house before it was sold? If you were not a part owner, you do not owe any tax. If you were not an owner you didn't sell anything, so the money you received was not proceeds from selling the house. It was a gift from your brother (or from your mother). You do not pay tax on a gift that you receive.

It's not clear exactly what you mean by "My brother sold our mom's house." Was your mother still alive when the house was sold? If so, does "our mom's house" mean that she owned it, or just that she lived in it? If she did not own it, who did own it? If your mother owned the house but she passed away before it was sold, who inherited the house?

Is your name on any of the papers or documents from the sale?