heir property of land sale

Forum|Forum|3 years ago
February 5, 2023
1 reply
0 views

My relatives and I sold vacant land in 2022 that was still in my grandfather's name (he had no will when he died in 1926). We gained title at the same time we sold the land. Each received less than $600.

Do we have to claim this as income?

JamesG1

A US citizen is subject to tax on worldwide income from all sources and must report all taxable income and pay taxes according to the Internal Revenue Code.

You inherited real property in 2022. There is no taxable event when you inherit the real property.

However, when the inherited property was sold in 2022, the basis (cost to you) is likely the same as the selling price of the land partial.

For the basis of your inherited property, see IRS Publication 551 page 10.

Inherited Property

The basis of property inherited from a decedent is generally one of the following:

The FMV of the property at the date of the individual's death......

In TurboTax Premier Online or above, report the sale under Federal / Wages & Income / Investments and Savings / Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B).

Proceeds will equal Cost basis equals $0 gain.