Question

Sold car that I inherited due to father's passing

Forum|Forum|4 years ago
April 20, 2022
1 reply
0 views

I am sorry if I am posting this in the wrong place, but looking towards next year's taxes and want to know what to do. My father passed in Feb of this year. He was the title owner of the vehicle. My siblings live out of state-including the executor of the estate-and I am the only one within the state. Executor had me fill out paperwork and the siblings signed over the vehicle to me, in order to sell it as an inherited vehicle. So we had the title of the vehicle put in my name and then I sold it on behalf of my family to Carvana. The check was made out to me, and then I deposited it to an account that I was on with my father at the bank. My question is, will I be taxed on this $16K vehicle next year? I am only inheriting 1/3 of the car sale. How does this work? Thank you!

fanfare

Employee

@mjmommy2001

if you took the car as inherited then your cost was $16,000 and your proceeds were $16,000.

You had zero gain.

I would not even bother reporting this unless carvana gives you some 1099 document,

which I doubt would happen.

M

mjmommy2001Author

Thank you. Now if Carvana does send me a 1099 document, is it fully my responsibility for the taxes on this, even though I did not keep the full amount? That is where I am concerned. I do not want to be held responsible for this because I was the only one who lived in the state.

A

Anonymous_

Employee

You will have to report it if you receive a 1099, but you can simply make your basis the same as the sales proceeds listed on the 1099 so you have no gain or loss.