Inheritance

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@Happy Sugar wrote:

I heard something about capital gain?   

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That gain would typically be the difference between the fair market value on the date of death of the person from whom you acquired the cabin and the selling price (less sales expenses).

 

If the sale was close in time to the date of death, there may be no gain whatsoever. It is almost always advisable to get a date of death appraisal from a certified real estate appraiser.

I received the cabin in 2009 and just sold in Nov 2022. Can the realtor that helped us sell give me an appraisal from 2009?

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@Happy Sugar wrote:

Can the realtor that helped us sell give me an appraisal from 2009?

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Yes. However, note that the IRS does not have to accept anything less than an appraisal from a certified real estate appraiser.

Well, I guess this was not a inheritance.  My dad did a QuitClam Deed to have the cabin in my name.  This was signed on April 3, 2009.  I just recently sold the cabin on Nov 10, 2022.  Do I have to pay taxes on the sell or pay Capital Gain.  Need help with figuring this out...

 

Thanks

  Thanks for the info on your father signing the property over to you by use of a Quit Claim Deed. That does change the answer to your question as the property is considered a gift.

To figure out the basis of property received as a gift, you must know three amounts:

• The donor's adjusted basis just before the donor made the gift.
• The fair market value (FMV) of the property at the time the donor made the gift.
• The amount of any gift tax paid on the gift (Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return).
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• If the FMV of the property at the time the donor made the gift is equal to or greater than the donor's adjusted basis, your adjusted basis is the donor's adjusted basis just before the donor made the gift.
• The basis of the gift in the hands of the giver is the basis for the receiver of the gift. This is usually the case in a rising property value market. 
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• If the FMV of the property at the time the donor made the gift is less than the donor's adjusted basis, your adjusted basis depends on whether you have a gain or loss when you dispose of the property. If this is the case, please refer to more instructions at: https://www.irs.gov/faqs/capital-gains-losses-and-sale-of-home/property-basis-sale-of-home-etc 

For example: The property was purchased for $18,000 in 2001 by your father.

The FMV of the property was $25,000 at the time of the quit claim deed in 2009.

Your basis for the gain/loss calculation is $18,000, your father, the giver's basis in the property. 

 

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@Happy Sugar wrote:

Well, I guess this was not a inheritance.  My dad did a QuitClam Deed to have the cabin in my name.  This was signed on April 3, 2009.

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You should consult with a local tax professional (and/or legal counsel).

 

You may be able to claim this is an implied life estate (i.e., that your father retained a life estate and you received a remainder interest).

 

https://www.law.cornell.edu/cfr/text/26/20.2036-1