Inherated a house as part of my parent's estate and have received a 1099 for the sale.

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posted
11 years ago

Sat, Apr 6, 2013 3:11 PM

Inherited a house as part of my parent's estate and have received a 1099S for the sale.

The house sold for $370. (Half to me half to a sibling) Should I consider this as part of the untaxable estate or do I handle the sale/1099S in some other way? Are there any filing requirements on the part of the estate which is based in Louisiana.

Also received a disbursement of an insurance company death benifits of $15k with $10K on a 1099R listed as taxable. How should that be handled?

I'm (trying to) use Turbo Tax and have gotten myself completely confused with both the tax law and the program.

Any assistance would be appreciated.

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posted
11 years ago

Sat, Apr 6, 2013 4:10 PM

There's a lot wrong here. The house either was inherited by you, or you bought it. Inheriting a house contains no sales transaction, but it comes with a step up in basic, e.g. the house worth $100K on your parent's passing now has a $100K basis, so when you sell it, the gain is what it increased from there.

Who owns the house now? If you actually inherited it, but sold it to a third party, why was it only $370? Is this a typo? $370K?

Mind clarifying what the details are?

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posted
11 years ago

Sun, Apr 7, 2013 2:47 AM

Don't recall the names of the buyers.

Yes it was a typo. the sale amount was $370K.

The property was inherited and sold by the estate. Under Louisiana law (Napoleonic Code) we (sibling and I) had to sign the transfer paperwork. Title company issued the 1099S. My concern is how to handle reporting the money on the 1040.