Skip to main content
February 14, 2021
Question

My mother left a home to myself and2 siblings. it was sold a proceeds was split 3 ways. do i pay taxes on my part of the proceeds?

  • February 14, 2021
  • 1 reply
  • 0 views
was given a 1099s from title  company after sale of family home , do i pay taxes  on this money?

1 reply

MaryM428
February 14, 2021

Yes, you will pay taxes on your share of the proceeds from the sale of the inherited home.  You will only pay taxes on your share so only enter the amount you received as the proceeds in TurboTax.
 

When you inherit property after the owner dies you automatically receive a "stepped-up basis." This means that the home's cost for tax purposes is not what the now-deceased prior owner paid for it. Instead, its basis is its fair market value at the date of the prior owner's death.

The cost-basis figure is usually the fair market value at the time the owner of the estate dies, or when the assets are transferred. If the assets dropped in value after you inherited them, you may instead choose a valuation date of six months after the date of death.

Here are the directions to enter the Sale of the Inherited Home in TurboTax.