We sold my moms home and split the proceeds. how is this reported? We were able to due Bond in Lieu of Probate.

Forum|Forum|6 years ago
June 1, 2019
2 replies
0 views

My mom passed the week we were going to close on her house in 2015. We were able to use Bond in Lieu of probate to sell the house in Jan 2016. the proceeds were split between the four heirs. How is this reported on my tax return?

Her will was filed but an estate return wasn't because the only thing she had was the house. the remaining was used for funeral and doctor bills.

TurboTax Premier Windows

Best answer by fanfare

The fact that you got a 1099-S requires you to report the sale, not the 1099-S.
Use the correct amounts to report the inheritance and sale of the home.
When you mark it "Inheritance" it is treated as a Long Term Capital Gain or Loss, regardless of how long you held ownership.
Divide all amounts by four on your return if you are a one-fourth heir (unless the 1099-S already did this).

In description i would put something like "25% beneficiary of 123 Anystreet, Town, ST"

You would have to report this regardless of whether you got a 1099-S or not.
Once you figure it out you can show your siblings how to do it.

fanfareAnswer

Employee

fanfare

Employee

P.S. Since you sold immediately, or almost immediately, you will have a loss on this transaction, in the amount of the selling expenses.

Employee

Assumption, you received the total of the proceeds!

Generally, if you receive a Form 1099 for amounts that actually belong to another person, you are considered a nominee recipient. You must file a Form 1099 with the IRS (the same type of Form 1099 you received) for each of the other owners showing the amounts allocable to each.

You must also furnish a Form 1099 to each of the other owners. File the new Form 1099 with Form 1096 with the Internal Revenue Service Center for your area.

Generally you may enter the amount due to other as other expenses with details in the description area as a nominee with other owner name and SS #. in the description block that is provided.

For each of the other owners showing the amounts allocable to each. You must also furnish a Form 1099 to each of the other owners. File the new Form 1099 with Form 1096 with the Internal Revenue Service Center for your area. On each new Form 1099, list yourself as the “payer” and the other owner as the “recipient.” On Form 1096, list yourself as the “Filer.”

Carl11_2

Employee

fUmmmmmm. I see they posted a duplicate today. After reading, now I see why. You didn't answer the question, which is "How is this reported on my tax return?". Did you really answer this? I've never seen you answer a question like this before. Has your account been compromised maybe? 🙂