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inherited home

Level 2

Son inherited Mom's home and sold it two months later.  Sale price was exactly the same as value of home at day of Mom's death-so no capitol gain.  But, there was cost of listing and selling the home.  Would these costs make for a net loss on sale of home for the son?

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Level 11

Was there any personal use of the home from the time it was inherited until it was sold?  For example, had he been living there the last ten years?  If not, then it's a capital asset sold at a loss reported on Schedule D.

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Level 11

Was there any personal use of the home from the time it was inherited until it was sold?  For example, had he been living there the last ten years?  If not, then it's a capital asset sold at a loss reported on Schedule D.

View solution in original post

Level 11
Level 11

Be sure it is an arm’s length transaction, which is a transaction where the buyers and sellers have no relationship to each other. Except when handling an inheritance, related parties include:

  • The estate
  • The executor
  • Beneficiaries of the estate
Level 2

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