Death of a family member

[jeaniebean13]

My step father passed away this past April, and he Quit claimed me his house as my inheritance.  I filed the Quit claim in April, and sold the house in May.  How do I report this?  

[Bsch4477]

Report as an asset sale with the cost basis being the value of the home at the time of his death. Assuming that the value did not change in the interim there would be no gain or loss. 

[tagteam]

The answer @Bsch4477 posted is correct. 

However, did he quitclaim the property to you prior to his death?

[jeaniebean13]

He had the Quit claim deed in a safe deposit box, and instructed me upon his death to file it.

[jeaniebean13]

It shouldn't have changed that much in 6 wks, at least that was what I hoping.

Also, I bought a house in Oct in Prescott, AZ.  Will this help me with my taxes?   I could't afford my own place until I sold my fathers. I am disabled, and have been collecting since I was 62, so I haven't really had to file taxes in the last couple of years.

[HelenC12]

No, the purchase of your AZ home won't affect what you sold your father's home for however you may be able to deduct mortgage interest and property taxes on your AZ home. 

To enter the sale of your father's home, see Where do I enter the sale of a second home, an inherited home, or land on my 2021 taxes?

Related Information:

• Can I claim property (real estate) taxes if I recently bought or sold my home?
• Can I deduct my mortgage?

[Bsch4477]

Property tax and mortgage interest payments are deductible if you itemize. 

[jeaniebean13]

My father has assets in the bank that he wants to go to me.  After all his bills and other debts are paid, I was told I can keep the rest.  His Estate did go into probate, because he didn't put a POD on his bank account. There will be approx $40,000.00 left over.  Can I claim this also as part of my inheritance?

[tagteam]

The probate court essentially makes those decisions but are you the executor of his will (administrator of his estate)? Do you have an attorney? I assume an attorney is representing the estate. Is that the case?