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Replies: 8
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All-In [40342]
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tax question
Feb 11, 2019, 4:23 PM
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i inherited a house in columbia 10 yrs ago when my mom died.
It's always been a rental property and reported as such on my taxes. The whopping $216/yr that my portion provided.
I can't for the life of me figure out where to tell this to turbo tax. I said it was rented part of the year and then sold. It said since I didn't pay anything for it, that it's an expense and not an asset anymore. I found a spot to include the commish paid at closing, but nothing about how much I brought home from said transaction.
I'm happy to keep it as is, but it seems like uncle sam would want some of that pie, or at least to know that it happened.
any thoughts?
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Heisman Winner [135480]
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I'm pretty sure America doesn't need YOUR charity.
Feb 11, 2019, 4:24 PM
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GOOD DAY, SIR.
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Oculus Spirit [85088]
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I had a weird question for Turbo Tax one year, I chatted
Feb 11, 2019, 4:44 PM
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with or called and they fixed it.
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Orange Blooded [3826]
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Re: tax question
Feb 11, 2019, 4:54 PM
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Don’t know if this helps but this is what I personally did with my inherited parents house. 3 of us inherited my parents house which we sold 2 years later for less than we valued it during probate. I used Turbo tax and since property was not an investment did not have to pay taxes on money received from sale. Of course I could not claim the loss on said property. I remember researching the hell out it cause didn’t think it was right. Best I remember was you have to pay tax on any amount of money received above what the property was valued at probate. I believe there is even some percentage used for today’s value on older property. I am not a tax professional and we didn’t rent ours.
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Lot o points [163010]
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You have a big can of worms and I am afraid to ask questions
Feb 11, 2019, 5:55 PM
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You get tax basis based on date of death - so the value placed on the property at the date of death (probate or if a taxable estate, the estate tax return) is what your basis is.
Now, you have been renting, so you should have been depreciating the house (not the land, the house) and it's contents - taking this expense against the rental income. The IRS does not care whether you really did depreciate it, you should have and therefore your cost basis would now be reduced by the accumulated depreciation during the rental period.
You sell it - gross sales price less all the cost of the sale, closing stmt should help here, but if you had to do anything to the house, include that, then the net is your gain, long term capital gain - split how ever your portion is determined.!
Don't forget SC gives you a big break on this also.
Someone should have received (or will receive) a 1099 for the proceeds. Hopefully the 1099 will be split up based on who got what, if not, that person will need to show on their return that they did not get 100% of the proceeds.
Good luck.
Message was edited by: Father G®
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Lot o points [163010]
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Oh, remember, tax advice like all other advice
Feb 11, 2019, 5:57 PM
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you get what you pay for and the answer to any tax question is...
"It depends."
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CU Medallion [50635]
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when henrys daddy died brother and i got dads house and some
Feb 11, 2019, 7:10 PM
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other monies,sold house owed nothing cause under estate tax thresholds
don't know how rental fits in but sounds like not much income or depreciation
that my have to be reclaimed at sale
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All-In [40342]
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Thanks for the help
Feb 11, 2019, 10:03 PM
[ in reply to You have a big can of worms and I am afraid to ask questions ] |
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Sounds like I’m pretty okay.
The 1099 on the proceeds is mostly what I was wondering about. I figured the govt would want to know.
My Edward Jones lady didn’t seem to think there would be any tax burden when I told her we were selling.
We also aren’t talking huge money here. Land worth $200k. House on it worth $15k when it was all said and done. I got a 6th of that.
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Oculus Spirit [80978]
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You can buy a new truck
Feb 11, 2019, 10:12 PM
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or at least a used new to you.
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