Selling Property

[Myaccount1]

My parents passed away and I sold their house. Proceeds were split 4 ways. I received 20k. How do I report it? Do I report the total or what was given to me?

[RobertB4444]

You (and the three others that you split with) are each going to enter one fourth of the sale onto your tax return.  You will input the sale and then the value of the money received at one fourth and the value that was paid (the basis - which in this case is the value of the house on the day that your parents passed away) for the property.  If there is a profit showing at that point you will pay taxes on the gain.

Here is another example

[Myaccount1]

So let's use this equation: house sold for 85k. After fees, 82k was left over. And beneficiaries got 20k each....where do I go from here?

[MayaD]

You should report it as investment sale.

1. Login to your account.
2. Select Federal from the left menu
3. Go to Wages and Income
4. Scroll down to Investment Income.
5. Since you did not receive a 1099-B, answer “no” to the 1099-B question
6. Select Other for What type of investment did you sell?
7. Select I inherited for How did you receive this investment? 
8. Increase the basis (FMV) of the inherited property by the allowable closing costs.

You can deduct the selling expenses(your share) from the gross proceed.

 Sales expenses include:

• commissions
• appraisal fees
• broker's fees
• legal fees
• advertising fees
• home inspection reports
• title insurance
• transfer taxes or fees
• geological surveys
• loan charges (points) or other fees paid on the buyer's behalf
• any fees for a service that helped you sell your home without a broker (listing fees, promotional fliers, etc.) 

[Myaccount1]

I got a 1099-S does that make a difference?

[Myaccount1]

And do the previous instructions still apply?

[MayaD]

No. The steps mentioned above takes you to the section where you would report the 1099-S form.

[Myaccount1]

I think I got it! When I do complete my taxes, will there be reps available if I get stuck?

[Vanessa A]

Yes, you can contact a live agent on the phone anytime you get stuck.  You can also message us in care.

[Myaccount1]

When is the earliest I can file?

[DawnC]

The IRS is accepting returns now.   

[Myaccount1]

How can I save the information given today?

[RobertB4444]

Copy and paste these words into a document on your computer.  Or print them out.