Yardley CPA Posted April 4, 2019 Report Posted April 4, 2019 Siblings inherited deceased Mom's home through her will. Basis is the fair market value at date of death, correct? In any event, the pair of brothers determined, through use of nighborhood sales records and consultation with a realtor, that the FMV was $240,000. One brother paid the other brother $120,000 as he wanted to take ownership of the home. There is no 1099-S. There is no "gain". I believe the property was deeded to the one brother after this transaction took place. My client, MFJ, is the one who received the $120,000. Based on these facts, I'm wondering if this impacts his return? I don't think it does and don't feel it needs to be included but wanted to see what others feel? Thanks! Quote
Yardley CPA Posted April 4, 2019 Author Report Posted April 4, 2019 Sorry...It's Children. The Mom willed the home to her two children. They are the siblings. Just wanted to clarify that. Quote
DANRVAN Posted April 4, 2019 Report Posted April 4, 2019 You need to report the sale of brother's interest in the house in order to file a complete and accurate tax return. 1 Quote
Yardley CPA Posted April 4, 2019 Author Report Posted April 4, 2019 2 minutes ago, DANRVAN said: You need to report the sale of brother's interest in the house in order to file a complete and accurate tax return. So would the transaction be a Schedule D item showing the basis as $120,000 and the proceeds as $120,000? 1 Quote
Catherine Posted April 4, 2019 Report Posted April 4, 2019 18 minutes ago, Yardley CPA said: So would the transaction be a Schedule D item showing the basis as $120,000 and the proceeds as $120,000? Yup! 1 1 Quote
DANRVAN Posted April 4, 2019 Report Posted April 4, 2019 and long term since the property was inherited 3 Quote
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