The IRS will generally accept as a valuation the sales price
of a property sold withn 9 months of death. Exceptions may
apply in certain areas like Las Vegas where property values
have skyrocketed 25% in the last year. Or the case of my
client whose husband died in August 2002 (appraised value
$750,000) and who sold her house in April 2003 for $950,000.
There were 33 bids on it and the one she took was all cash.
It was listed at $750,000. In most areas real estate prices
will remain stable in a 9 month period.

Linda Dorfmont E.A., CFP ,CSA

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Carvin wrote:

- quote -

Prior to making your tax appointment, do some preliminary
work and find out from the estate executor/administrator
what the fair market value of the house was in April 2004.
This will be necessary to determine whether or not you have
a gain OR LOSS in the sale. Whatever, it will go onto your
tax return, schedule d.

ChEAr$,
Harlan Lunsford, EA n LA


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ingebritson[at]cableone.net (Carvin) wrote:

- quote -

Now, nothing. You owe no tax on an inheritance, nor do your
siblings.

You don't say anything about the house being occupied and
producing income during the April - November period, so your
joint Cost Basis would be the value of the house in April.
It's unlikely there was any significant change while it was
being sold (unless it was in a rare "high demand" location),
so I wouldn't sweat the issue.

Bill

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"Carvin" <ingebritson[at]cableone.net> wrote
- quote -

If you do, it will be a 1099-S reporting your portion of the
gross sale amount (before closing costs).

- quote -

Call the closing attorney, as they should be the ones that
prepare and mail the form, if any are to be sent.

On a lighter note, you'll probably not owe any tax, and
here's why. Your costs basis is the value as of April 04,
and any gains through November 04 would most likely be eaten
up with the closing costs (realtor commissions, attorney
costs, etc.). So get those numbers from whom ever has them
and claim your third.

I'd get the closing documents (HUD-1, among other forms),
and some idea of the value back in April (who handled the
estate?), and file accordingly.

--
Paul A. Thomas, CPA
Athens, Georgia
taxman at negia.net

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"Carvin" <ingebritson[at]cableone.net> wrote:

- quote -

Yes, you should have, but it's not necessary. Be sure to
take a copy of the closing papers with you so the preparer
knows about expenses of sale.

--
Phil Marti
Clarksburg, MD

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Me and my 3 siblings inherited a house in April of '04 and
sold it in November of '04. We each received a check for
$80,000 in December of '04. Neither I or any of my siblings
lived in the house and we all live in different states than
the location of the house.

Now what? Am I suppose to receive a 1099 of some sort to
take to my tax preparer? As of today I haven't received any
tax documents relating to this sale. I thought these
documents were supposed to be postmarked by January 31st. Do
I just go to my preparer and tell them I received $80,000
and let them handle it?

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