Sale of an inherited object

Forum|Forum|1 year ago
March 23, 2025
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I found an object while cleaning our my deceased parents home that I imagine would be considered an inheritance.

I subsequently sold the object through a 3rd party auction house on a lark (parents had no idea of it's value).

I received an amount more than expected ( >600.00$).

The auction house will be sending me a 1099x and will be reporting it to the IRS.

Is this money considered reportable Income or just considered part of my inheritance?

Best answer by NCPERSON1

@aphil138 personally, if the auction house issues you a 1099, I would report it. But while you don't know what it was worth on the date of death, it is reasonable to assume its value on the date of death was the same as what the auction house was able to sell it for. So the net effect is no gain on sale, but you have reported what the IRS has in its records.

KrisD15

If the item was found because you inherited the home and its contents, the item would be inherited and valued as of the Fair Market Value on the date of passing.

If sold soon after, there would be no gain to report.

That would be a non-reportable event.

Keep the 1099 with your tax file, but it needn't be entered.

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aphil138Author

We have no idea of the fair market value at the time of the inheritance. It wasn't until we sold it it at auction when we found out what it was worth.

Would it still be just considered an inheritance and just not report it?

We sold it through a 3rd party (auction house) and they are obligated by law to report sales over 600.00? Does that mean WE have to report it or just considered it an inheritance?