Sorry this seems complicated this maybe a fairly unquie situation
We did not own the property.
It was still in my grandparents' name even after their passing and the taxes after that was being paid my father who never put the building in his name
He passed a couple of years ago and the property was abandoned due to the large amount of back taxes that was owed
we did not sell the property, the State did back in 2023 we did not know there was an over payment until a year later near the end of 2024 when we had a lawyer get the over payment on behalf of my grandparent and it was divided among the remaining descendants
When I was trying to enter the investment sale I put in the date of the sale and it said I could only put in for 2024
what @DianeW777 said here I am also having some issues because of the 2023 date and other info which some of this is missing from the 1099-S but I contacted the county assessor's office to fill in the blanks
1) Your cost would be the value on the date of death of your grandparent x your percentage as
beneficiary.
I got the fair assessed value of the property from 2015 from the date of passing from the Assessors' office
Do I take that and Multiply (x) by my percentage which is 1/6th
also my 1/6th was the sell price, less the owed taxes not of the value of the property
2) The selling price is on the 1099-S.
This here I had to get from the assessor's office as well it was not on the 1099-S but I have the sell price of what the state sold it for in 2023
All I have listed on the 1099-S Proceeds form real estate transactions is box 2 Gross Proceeds which is my 1/6th portion of the tax overage
So this is why I am a bit confused on how to enter this
Yes, the cost basis and selling price is exactly what you indicate.
- Use the fair assessed value of the property from 2015 from the date of passing from the Assessors' office.
- Multiply (x) by your percentage which is 1/6th.
- Do not use the taxes owed. If you can itemize deductions the taxes would be deductible, but not part of the sale.
- Use your portion (1/6) of the total selling price. If the property was sold for the delinquent taxes, then this will be your selling price.
If the property was sold in 2023 but you received proceeds in 2024, you should report the sale as though it was 2024. You cannot enter a sale date of 2023 in a 2024 tax return.
@KurtisK
