TOD Beneficiary

Forum|Forum|3 years ago
March 30, 2023
2 replies
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My father had his condo with TOD beneficiaries of myself and two siblings. He died in Dec 2020. It took the lawyer and city until Nov 2021 to get everything recorded. We sold the condo and it closed in Jan 2022. So I'm assuming we owned it for 13 months, even though the lawyer/city took their time with the deed.

I'm not sure how to approach this on my taxes. I received a 1099-S stating my portion of the sale. What it didn't include was money we put in escrow to pay for renovations being done by the condo association (there was issue with siding so all the units were being fixed). IE - I didn't receive all the money listed on the 1099-S.

What little on the topic I can find, I need a cost basis or fair market value for the condo at the time of his death.

How do I find the cost basis or FMV?

What do I do with all of this on my taxes?

Thank you in advance.

Best answer by Anonymous_

The optimum would be a date of death appraisal by a certified real estate appraiser. You could get away with a CMA from a licensed real estate broker.

The cost of any improvements made after the date of death could be added to the date-of-death basis.

Anonymous_Answer

Employee

The optimum would be a date of death appraisal by a certified real estate appraiser. You could get away with a CMA from a licensed real estate broker.

The cost of any improvements made after the date of death could be added to the date-of-death basis.

AmyC

Employee

1. You have owned the condo since your father passed in Dec 2020.

2. You enter the amount on the 1099-S. When you own a home, repairs and maintenance are part of home ownership. It is common for people to fix up their homes before selling. Those expenses allow you to sell the home and possibly for more.

In addition, commissions and other closing expenses are also subtracted from what you received.

3. You do need the FMV based on his date of death. There may be a property tax form showing the value. There will definitely be a real estate agent that knows the area and can give you a value. Keep a note of where you obtained the information.

4. For your taxes, follow the steps in Where do I enter the sale of a second home, an inherited home, or land on my 2022 taxes?

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T0mmyTAuthor

Thank you to everyone for the replies.

Follow-up (or clarity) question ->

Since this was a TOD and wasn't our main home, are the HOA expenses deductible? Mileage to clean out his stuff? Gas/Elec bill? Water/Sewer bill?

Thank you all again.

Anonymous_

Employee

@T0mmyT wrote:
Since this was a TOD and wasn't our main home, are the HOA expenses deductible? Mileage to clean out his stuff? Gas/Elec bill? Water/Sewer bill?

No. Typical ownership costs (other than mortgage interest and property taxes) are not deductible unless the property is held for business purposes or for the production of income.