Question

Reporting the sale of inherited land

Forum|Forum|7 years ago
June 4, 2019
1 reply
0 views

My wife inherited some land from her mother who died three years ago. We are now selling the land, and at closing, the money will go into an estate checking account. The money will then be devided between her and her brother. Do we report this in the year of the closing, or report it when the estate writes the checks to her and her brother ? How do we determine the value of the land at the time of her mothers death ? I intend to use turbotax again for this years tax. What do I need to do ahead of time ?

TurboTax Premier Online

T

TomD8

Employee

A capital gain from the sale of real estate is reported on the tax return for the year of sale. The closing date establishes the year of sale.

A local real estate agent may be able to help you estimate the property's FMV as of the date of the decedent's death.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

Critter

Employee

If the estate is selling the land then the estate will need to complete an income tax form ... seek professional assistance if you are unsure of what to do.

This form 1041 will require a trust program which is a separate program from any of the personal income tax programs.