Client received 1099-S for sale of deceased brother's home. He did not gain or lose anything from sale. How and where do I file 1099-S on client's tax return?
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Welcome Aboard MColtrane
and great name, any relation to the jazz musician?
Anyway, I just want to tell you that if you have questions about death, trusts, etc, read up on Burke's posts; he is quite knowledgeable on these topics.
How and where you report the proceeds is on the Schedule D if your client inherited this property from his brother and he is the only beneficiary. If your client lived in the home prior to the sale, this could jeopardize any losses resulting from the sale. If your client didn't live in the home and sold the home immediately after the passing of his brother, there really may be a loss to be had (closing costs, realtor fees).
Read up on the section in TTB regarding the tax basis of inherited property. Even if your client sold the property for Exactly the same FMV as when his brother passed, the closing costs/realtor fees would net your client a loss. Losses are categorized as Long Term Capital Losses, even if the holding period of the property was less than one year from the date of inheritance. Long Term Capital Gains would result if there is a gain on the sale.
Others will probably chime in as sometimes I get ahead of myself!
Welcome Aboard fellow Taxbooker and good luck this tax season!Circular 230 Disclosure:
Don't even think about using the information in this message! -
I really don't have a thing to add to the post above. You are right on the money.Comment
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Thanks for the info!
Originally posted by DaveinTexas View Postand great name, any relation to the jazz musician?
Anyway, I just want to tell you that if you have questions about death, trusts, etc, read up on Burke's posts; he is quite knowledgeable on these topics.
How and where you report the proceeds is on the Schedule D if your client inherited this property from his brother and he is the only beneficiary. If your client lived in the home prior to the sale, this could jeopardize any losses resulting from the sale. If your client didn't live in the home and sold the home immediately after the passing of his brother, there really may be a loss to be had (closing costs, realtor fees).
Read up on the section in TTB regarding the tax basis of inherited property. Even if your client sold the property for Exactly the same FMV as when his brother passed, the closing costs/realtor fees would net your client a loss. Losses are categorized as Long Term Capital Losses, even if the holding period of the property was less than one year from the date of inheritance. Long Term Capital Gains would result if there is a gain on the sale.
Others will probably chime in as sometimes I get ahead of myself!
Welcome Aboard fellow Taxbooker and good luck this tax season!Comment
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