My brother sold our mom's house in CO and gave me a portion. He paid taxes on his portion and I want to pay taxes on my portion. I live in AZ. What is my tax?
My brother sold our mom's house in CO and gave me a portion. He paid taxes on his portion and I want to pay taxes on my portion. I live in AZ. What is my tax?
If your brother "gave" you part of the proceeds of the sale, you do not have any tax. The recipient of a gift does not owe tax on the gift. But we have no details----was this a distribution of assets from your mother's estate? Or was the house left in a will to your brother alone and did he then choose to give part of the money to you? Details are needed.
GIFTS
Money that you receive as a gift is not taxable income to you, and you do not need to report it on your income tax return.Money that you gave as a gift to someone else is not deductible for your taxes.
Turbo Tax does not support the gift tax form 709, but here is a link:
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
I this was an inherited house, there is likely nothing to report on your (or your brother's) income tax return. The sale amount/proceeds is not income. There will most likely be no capital gain and therefore no tax. Any capital gain would be the difference between what the house was worth on the date of the decedent's death (your "costbasis") and what the house sold for. Considering the expenses of sale, you might even have a capital loss.
If the house was "investment property", and sat vacant between inheriting it and selling it, you can deduct the loss.