The valuation of the doors is likely the fair market value (FMV) of the property at the date of the individual's death. An appraisal may need to be obtained or a valuation may be obtained from the estate administrator or an overseas tax authority.
Per IRS Publication 551 (page 10), the basis of property inherited from a decedent is generally one of the following.
- The fair market value (FMV) of the property at the date of the individual's death.
- The FMV on the alternate valuation date if the personal representative for the estate chooses to use alternate valuation.
- The value under the special-use valuation method for real property used in farming or a closely held business if chosen for estate tax purposes.
- The decedent's adjusted basis in land to the extent of the value excluded from the decedent's taxable estate as a qualified conservation easement.
If a federal estate tax return doesn't have to be filed, your basis in the inherited property is its appraised value at the date of death for state inheritance or transmission taxes.
The transaction will be reported on Schedule D of the Federal 1040 tax return. Schedule D will report the income received, the inherited basis and related sales expenses.
Freight expenses may be deducted as you are entering the IRS form 1099-K information. Follow the procedures listed here for IRS form 1099-K income reported as personal items sales.
When entering the income, select I paid sales expenses that aren't included in the sale proceeds reported on the form at the screen Let us know if any of these situations apply to this sale.
Examples of sales expenses include delivery fees and express delivery fees.
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