Question

sold inherited home proceeds split 3 ways

Forum|Forum|6 years ago
February 11, 2020
1 reply
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My two sisters and I inherited my parents home after our father passed away in May 2019. We sold the home in November 2019. We all received a 1099-s for our portion of the proceeds. When I report this on my taxes, do I use the total FMV of the home or do I report my 1/3? Can i just use the sale price as the FMV since we sold within 6 months of inheriting it?

SusanY1

You will report only your share, or one-third, of the value of the home on your return and not the full value.

I cannot imagine that the Fair Market Value (FMV) of the home changed significantly in six months, as long as you did not sell it at a steep discount to sell it quickly. It seems reasonable to use the sale price for the FMV in your case.

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