My mother passed earlier this year. Her home was liquidated, with the proceeds going equally to each of her 3 children. MY portion ($274,000.00) was deposited into my checking account.
I understand this money is not taxable income, but how do I let the IRS know this as my bank will surely report the deposit?
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CarleneF FreeTaxUSA Agent Posts: 27
Often you will receive a Form 1099-S reporting this sale. Usually, when you inherit a home and it is sold right away, there is little to no gain. However, you will still need to report it on the Stocks or Investments Sold screens in our software. The cost basis is the fair market value of the home on the date of death. If you inherited the property with others, then you will only enter your portion on your return. For example, if you inherited the house with one other person, then you would enter 1/2 of the cost basis and 1/2 of the sales proceeds on your return.
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Answers
infoseeker Member Posts: 3 Newcomer
Thank you
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