Deductible selling expenses - proceeds of share of home sold in bankruptcy

Forum|Forum|2 years ago
March 6, 2024
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Original issue for clarity: Solved: What is reported as final income for tax purposes on sale of an inherited home? (intuit.com)

New question:

I received the final financial report regarding the sale of the home and distribution of all funds (sold in 2023). It looks like there are three different numbers I could use to report my share of proceeds (all numbers below divided by 1/5).

Sales price (no expenses taken out): $1.11M

Sales price less administrative fees (includes some tax judgements against two of the other owners, bank fees, HOA owed fees) but does not include selling agent's commission: $1.036M

Actual disbursement to include selling agent's commission being taken out: $970K (divided by 5).

Which number do I use for the sales proceed number in TurboTax (divided by 5) and do I list the total of administrative fees and seller's commission or just the seller's commission as an expense?

The home was inherited (2007) and the value was at $518K at the time of inheritance and was sold for $1.110M in Chapter 7 bankruptcy proceedings in June 2023.

Best answer by ThomasM125

The sale proceeds would be the gross sale amount, or the amount reported in box 2 of form 1099-S if one was issued. The expenses of sale would be the commission plus the administrative fees.

ThomasM125Answer

The sale proceeds would be the gross sale amount, or the amount reported in box 2 of form 1099-S if one was issued. The expenses of sale would be the commission plus the administrative fees.

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