Question

My mother passed away last May. My 2 brother's and I inherited her house. We sold it 4 months later and split the proceeds 3 equal ways. The realtor told us at the time of my mother's death the house

Forum|Forum|5 years ago
January 3, 2021
1 reply
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Was valued around $220,000 and we sold it for $212,000. Do I have to pay taxes on my share of the proceeds?

TurboTax Online

Yes it must be reported and with the cost of sale included you have a nice loss to take so you WANT to report it ... each of you should have gotten a 1099-S for your portion of the sale and as such the IRS expects you to report the sale ... failure to do so will result in a mess about 2 years down the road.

https://ttlc.intuit.com/community/entering-importing/help/where-do-i-enter-form-1099-s/00/26218

C

Crimsontide1591Author

Thank you for the information

N

NCPERSON1

@Crimsontide1591 - note that taxes are paid on the gain (or in this case take a loss), which is the difference between $212,000 less the $220,000, less the commission, etc. (and of course your share of that answer as your family members all split that result)

the tax is not paid on the 'proceeds'.

Further, that loss is valuable to you on your taxes.