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I received approximately $7K this year as my portion of sale of property from my father's estate. The estate attorney says I am responsible for figuring out if I owe tax

Forum|Forum|7 years ago
June 4, 2019
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When the estate return was filed the property was appraised at $24K so taxes were paid on that amount. In 2017 the property was re-appraised at $30K and sold for that amount. Do I use Schedule D to figure out if taxes are due on my portion (the 7K I rec'd)?

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Best answer by Hal_Al

The cost basis, on inherited property, is the fair market value (FMV) on the date of death. That was apparently $24,000. If the property was sold for $30,000, the capital gain is $6,000. That can be adjusted downward for any expenses on the sale.

On your tax return, you report your share of the sale (apparently $7000) less your share of the cost basis (24,000 divided by the number of heirs) on form 8949,and then schedule D.

Hal_AlAnswer

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The cost basis, on inherited property, is the fair market value (FMV) on the date of death. That was apparently $24,000. If the property was sold for $30,000, the capital gain is $6,000. That can be adjusted downward for any expenses on the sale.

On your tax return, you report your share of the sale (apparently $7000) less your share of the cost basis (24,000 divided by the number of heirs) on form 8949,and then schedule D.