How do I file the tax information on a piece of realestate that was sold? It was put into 3 peoples names.?
March 92010
Mother put in childrens names. She died 2005 house was in childrens names in 1989. Should it be done as a sale of realestate or would it be considered an inheritance? The house was sold for 30,000.00 less than the appraised value.
Was sold for 100,000.00 leaving approx 30,000.00 to each child. I do taxes for people who cannot afford to have their taxes done by the bigger companies. I have only about 50 that I take care of each year. I have never run across this situation before. I need your help!!!!
If the house was already in the children’s names, then there was no inheritance. Therefore it would be considered a sale of real estate. I believe the basis of the house would have been the basis on the date of the transfer, not the appraised value. Don’t forget to add the cost of any improvements to the original basis.
For more information go to the IRS website and download Publication 523 – Selling Your Home. If that doesn’t help, call the IRS directly.
March 9th, 2010 at 3:30 pm
If the house was already in the children’s names, then there was no inheritance. Therefore it would be considered a sale of real estate. I believe the basis of the house would have been the basis on the date of the transfer, not the appraised value. Don’t forget to add the cost of any improvements to the original basis.
For more information go to the IRS website and download Publication 523 – Selling Your Home. If that doesn’t help, call the IRS directly.
References :
http://www.irs.gov