Sold deceased mother's home 9/2010 for $74,000.. Proceeds divided equally among 4 siblings. Received 1099. Is this taxable income to me and siblings?

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    The income might be taxable if you sold the house for more than it was worth when your mother died. You can deduct the value of the house from the sales price. If there is a profit, it is taxable; but you cannot deduct a loss.
    • Does this mean if the house was sold below its' worth that no tax is due on the income divided between all siblings?
    • If the sales price is lower than the value of the house at the date of death (or purchase price if the decedent died in 2010), there is no tax due on the sale. You should consider the paragraph from Publication 559 posted by 'tagteam2008" to determine if you might be able to deduct the loss.
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    The basis of property inherited from a decedent is generally one of the following:
    The fair market value (FMV) of the property on the date of the decedent's death.
    The FMV of the property on the alternate valuation date if the executor of the estate chooses to use alternate valuation.
    See http://www.irs.gov/Help-&-Resources/Tools-&-FAQs/FAQs-for-Individuals/Frequently-Asked-Tax-Questions-&-Answers/Interest,-Dividends,-Other-Types-of-Income/Gifts-&-Inheritances/Gifts-&-Inheritances
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