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Sale of condo as diected by decedents will

Level 2

Client received Form 1099-S, amt $52,000.  Sale of condo ($311,000 net) directed by terms  deceased father's will.

Proceeds split among 4 relatives.  Are proceeds taxable?  If so, are they long-term?

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2 Replies 2
Level 15

1) The net is irrelevant.

2) The proceeds aren't taxable, but any gain is (after considering stepped up basis & selling costs). Term on the gain goes back to term as held by father (so likely long-term).

3) Any loss (after considering stepped up basis & selling costs) may or may not be deductible.'

4) $ 52000 x 4 = $ 208,000 yet net proceeds are $ 311,000 ?   Something doesn't math.

Former Chump... umm.... AllStar.
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Level 2

Thanks for help. (Widow received $147,000.)  Will apply updated basis amounts to amount received.