Question

Sale of jointly owned 2nd house

Forum|Forum|6 years ago
March 31, 2020
1 reply
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My father built a retirement home and when my mother passed away 6 yrs later he put all 5 of us children on the deed with him. He passed a year and a half ago. We had been on the deed for 5+ years when we sold the house(never rented it or lived in it). We paid the inheritance tax on his 1/6. We sold the house, splitting the proceeds. He paid over $300K to build it, we sold it for $225K. We received a 1099S. How do I report this? Can I claim a Capital loss? Do I have to report it as a Capital Gain?

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ColeenD3

Normally, I would go in depth to explain the difference between a gift (given while still alive ie. put on the deed) and an inheritance but the property was sold at a loss. You would divide the basis and the sales price between you all. You have to report it because it needs to be reported and because your got a 1099-S.

Personal use property does not qualify for a loss.

@mimid331

B

Bobpad

Three sisters, including my wife who files a joint tax return with me, sold a vacation home that was never rented. We lost about $12, 000. on it, or $3,000. each. In reading some comments it appears we would have to claim a gain, but can't claim a loss.

That doesn't seem right?