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G
gofastmikey
March 23, 2021
Question

Capital Gains - Real Estate

  • March 23, 2021
  • 1 reply
  • 0 views

My brothers and I inherited our mothers house as a result of a "Transfer on Death Deed" in 2016. We sold the house in December 2020 for $4,000 above the 2016 apprased value. Do we need to complete a Schedule D and possibly a Form 8949 for each of our 1/3 amount?  If so, is there anything special related to the Capital Gains for the selling of the house?  The title company has submitted 1099-S to the IRS for each of our shares for the sale of the house.  Besides the possible 1/3 Capital Gains, is there anything else we need to be concerned about with the inheritance and sale of the house?

    1 reply

    N
    NCPERSON1
    March 23, 2021

    your cost basis is what it was worth on your mother's date of death.  

     

    it's unlikely there are capital gains as your 'gain' is that $4000 less the closing costs.  Could be a capital loss. 

    G
    gofastmikeyAuthor
    March 23, 2021

    The seller paid all the closing costs so we should probably show the $4,000 as capital gains.

    G
    gofastmikeyAuthor
    March 24, 2021

    My mistake, the buyer, paid all the closing costs.

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