Question

home sale

Forum|Forum|3 years ago
March 17, 2023
1 reply
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My sister and I sold my moms home and each got 63,000. She had been dead for years but I lived in it for over 20 years until we transfer it into our names. do I need to pay taxes on my half

M

MayaD

Inherited homes do not qualify for the $250,000/$500,000 home sale tax exclusion.

When you sell inherited home, you owe capital gains taxes only on any gains that the asset made since you inherited it.

To determine if the sale of inherited property is taxable, you must first determine your basis in the property. 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, but only if the executor of the estate files an estate tax return (Form 706) and elects to use the alternate valuation on that return. IRS.gov

You would report half of the basis on your return.

To report the sale in TurboTax check: Where do I enter the sale of a second home, an inherited home, or land on my 2022 taxes?

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