What tax forms do I need if my father passed passed away and left me and my sister a house in his will?

[Ineedhelp2157]

Hello all, what tax forms do I need to fill out and send to the irs/goverment if my father passed passed away and left me and my sister a house in his will? No letter at all have showed up in the mail thus far, and i am getting worried. The house is already in my and her name. There are no others living there and we are both on SSI. One of us is married, but they do not live together at all, but are on good, communicative, working-togethor terms. The married couple has no kids. And the payee is the married one's partner.

The question is: What tax forms do I need to fill out and send to the irs/goverment if my father passed passed away and left me and my sister a house in his will?

[Critter-3]

An inherited house is not considered INCOME thus it is not reported on an INCOME tax return so that is why you have gotten no tax reporting forms in the mail.

However,  if there is a mortgage you are continuing to pay on and/or you pay the property taxes  AND  one or both of you itemize deductions then those items may be a deduction on the return of the person who actually pays the mortgage interest or RE taxes. 

[Ineedhelp2157]

The mortgage is still being paid off, i am not sure what itemizing deductions is. I Know about as much as jumping in a river to lean how to swim. No letters in relation to any form of tax, nor any letters with even the word tax on it at all have showed up in the mail this year Please help. 

[Critter-3]

Sometimes it is best to pay a tax pro for the information they can provide if you need help to understand new situations ...

https://turbotax.intuit.com/tax-tips/tax-deductions-and-credits/tax-deduction-wisdom-should-you-item...

[JulieS]

Yes, as Critter-3 points out, simply inheriting the house does not mean you have to file any tax forms at all. There is nothing to report to the IRS unless you sell the house. 

If your entire income is SSI, you don't need to file a tax return. Owning this house does not change that. 

[Ineedhelp2157]

so i and she does not have to file taxes at all, in any way, shape or form?  Even if all income is social security based and we are both homeowners in Arizona? We used to get tax dorm sin thee ail. But those stopped this year an have not received any. We just ignore that an everything's fine anyway?

[blaine7]

Personally, you and your sister will not have any additional tax forms to complete regarding the inheritance of your late-father's home. Nor will you receive anything tax-related in the mail regarding the inheritance of the property. At this point, there is nothing taxable with this transaction in the eyes of the IRS.

If and when you decide to sell the home, that's a different story. When you sell, you owe capital gains taxes only on any gains made since you inherited it. The cost basis of your inherited home is the value of the home on the date of death of the decedent (your father), and not the original purchase price. This is known as a stepped-up cost basis, courtesy of the IRS. If you sell the home for more than your stepped-up cost basis, you will owe capital gains taxes.

[ErnieS0]

Yes. It does appear the inheritance of the house is not a federal or state taxable transaction. Arizona has no inheritance tax. And you would not have to file a federal Form 706 estate tax return.

I was confused by what you meant by your father passed and left the home to you and your sister but the house was already in your and your sister’s name. If the home was already in your names, was the house transferred before your father passed?

I'm sorry for your loss.

[Ineedhelp2157]

So I wont need  Form 1098 (Mortgage Interest Statement) or any tax form from SSI to fill out? I used to get SSI tax stuff every year. And the house is NOT payed off.

I am just making sure..

[Vanessa A]

You will only need to include form 1098 on your return if you are itemizing your deductions instead of taking the standard deduction.   If you are not itemizing, then there is no need to include the 1098 on your return.  

If your only income is SSI then it would not be taxable income.  If you have no taxable income, then you would not file a return. 

[Ineedhelp2157]

just checking, i did not get a return, no file / letters of anything involving any sort of tax, tax form, anything in the world of existence or mention of any sort of tax ever came in the mail. None, i got nothing to tell me to pay taxes. My inbox is empty. Has been empty all year long.  Uncle sam has sent / left no messages or letters ever. And i am being told that is exactly what is supposed to happen. Correct?

[AmyC]

If you are renting out the house, you would file for the rental income. If the house is just sitting with one or both of you living in it, there is nothing to report, nothing to file since you do not normally file a tax return.

If you want to be positive, run through the quick quiz, Do I Need to File a Tax Return?

[Ineedhelp2157]

Thank you all, especially for your patience and actually very quick responses. That's really helpful 😄

[BESTax]

I say this as a professional credentialed tax preparer and real estate broker, this is not just as simple as "what tax forms do I need".

Since the home was left to you in a will, was the will probated? 

How was the property initially conveyed to your father; how was it titled? 

Were you or your sister ever added to the title, prior to his death? 

Is the home now titled in both your name and your sister's name?

What is the stepped-up basis on the home, since his death?

Are you or your sister the executor of the estate?

Who will file the final return for the decedent?

Will file the estate return(s), until the estate is conveyed to the beneficiaries?

If you are not sure about the answers, you should consult a tax professional and/or an attorney who specializes in Trusts and Estates.  I promise you it is well worth the advice now, and in the future when and/or if the home is sold.  

[Ineedhelp2157]

Hello BESTax,

no, it was not probated.

It was  a house for sale. We are still paying it off through mortgage.

me and my sister were added to the title as the inherited homeowners moths ago, and still are We went to a lawyer to get that done , and have the paperwork stating it with our and the lawyers signatures.

we both are executor of the estate, it is stated so that we own the estate and all on it 50/50 %, only us, no one else. We both work together about everything ever about the estate. 

i am not sure by what you mean by "Who will file the final return for the decedent?"

My repeated questioning on here i to find out just what exactly what an how and if about all that.

Please read the entire post from the start of this thread to get a better understanding of what I am trying to figure out. I am saying that not to be rude or unhelpful, ( i came here for help and understand you're all trying to help And thank you for trying.)   But because maybe it can help you, m help me, help us all to clear everything up.

me an my sisters are both the new owners, beneficiaries of the estate and all on and the property on an therein of the estate.  that was written word for word in pen. in the will of my dying fathers hand on multiple different forms that were already sent to court and he also had layers help him get and sign stacks of paperwork.

What the sam hay is a estate return and a final return? what are the names of the forms we might need? everyone else on here basically says its all fine and do nothing. which kinda worries me for some reason.

Please tell me what exactly is a  attorney who specializes in Trusts and Estates called so I can hopefully consult one.