If the sale was a gain, it should be reported. Technically, the sale of inherited property is a transaction that should be reported on an individual tax return. You should inquire with the executor of the estate about the following items:Sales price of the propertyFair market value on the date of the decedent's death (inherited cost basis)Your percentage of the property.If the sales price is greater than the inherited cost basis, you would have a taxable gain (a loss if the situation is reversed). On your return you would report your percentage of the sales proceeds and inherited cost basis.

Question

Should we report the portion of excess proceeds my husband received from the sale of a property in which he had an interest as an heir? His portion was less than $1,000.

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June 5, 2019
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Phillip1

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If the sale was a gain, it should be reported.

Technically, the sale of inherited property is a transaction that should be reported on an individual tax return. You should inquire with the executor of the estate about the following items:

Sales price of the property
Fair market value on the date of the decedent's death (inherited cost basis)
Your percentage of the property.

If the sales price is greater than the inherited cost basis, you would have a taxable gain (a loss if the situation is reversed). On your return you would report your percentage of the sales proceeds and inherited cost basis.