inheritance

[Sky14]

Hi,

We ( 3Siblings) inherited a couple of  properties when our father passed away.  After probate, the executor/estate sold the properties and equally divided the sale proceeds to his kids.  Is this taxable? Thank you.

[MayaD]

It is taxable. You will pay taxes on the gain not the total proceed. 

[Sky14]

Hi Maya,

Thank  you for the response. Could you explain gain vs total proceeds?

[Sky14]

Side note;  the properties were never transferred to us as they were sold by the estate.

[RobertB4444 · Accepted solution]

@Sky14  You need to contact the executor of the estate and ask if the proceeds that were sent to you will be accompanied by a K-1 from the estate - marking them as taxable - or if the estate sold the property and posted it on the estate's return meaning that they are not taxable.

[Sky14]

Thank you.