Proceeds from sale of inherited home

[accrowley95]

Hello, 

my husband inherited land along with his mother & siblings.  I received the 1099S form but not sure about what to enter for the sales proceeds & the cost basis.  Our portion of the sales process was $32 (the 1099S shows gross proceeds of $192,500 & the settlement statement shows cash to seller, which is what we actually sold the property for, was $170,108.  Which of these numbers do I enter for the sales proceeds? 

the cost or other basis line says the fair market value on the date of death, which according to the appraisal was $256,000.  Is that what I enter there, or do I use the respective % of that amount for my husband's share?  

[JulieS]

You need to report the gross proceeds from the 1099-S as the gross proceeds on the tax return.

If the full selling price was reported in his name only, but he had to give a portion to someone else, he may need to file a 1099-S to report the other person's share. 

You can add the closing costs you paid to sell the home to the basis. 

The FMV on the date of death, plus the selling costs, is the basis for the property. If the amount was shared with others, you do need to just report the % that is your husband's share. 

[accrowley95]

his mother is the one who inherited the home & we received a 1099S that shows our portion of the proceeds.  So, I would enter that amount & the % of the cost basis so the % both represent only our portion, correct? 

[JamesG1]

Yes.

Cost basis of inherited property is the market value on the date of death.  So, if:

• The inherited home was originally purchased for $30,000,
• But was worth $150,000 on the date of death, and
• You are one of three who inherit the property,

The cost basis will be $150,000 multiplied by 33 1/3% = $50,000.

The 1099-S will reflect your proceeds of the sale of a home.