TP received $10K net from sale of deceased parent house, qualify for $14K exclusion?

[AZ-Tax]

TP received $10K net from sale of deceased last parent house. Does that qualify for $14K annual exclusion?

[Burke]

It's not a gift if he inherited it. Did someone else inherit and they gave him the money? If so, it comes under the gift exclusion. It doesn't matter where the money came from.

[AZ-Tax]

This is what I know

It's not a gift if he inherited it. Did someone else inherit and they gave him the money? If so, it comes under the gift exclusion. It doesn't matter where the money came from.

What I know is the TP's last parent died leaving the siblings the house the parent resided in. 2 months after death the house was sold and the TP received % of the net settlement.

[JohnH]

D.

You don't really have enough information to know how to report it, if any reporting is required.

[AZ-Tax]

TP recieved 1099-S

You don't really have enough information to know how to report it, if any reporting is required.

TP received 1099-S so must be reported.

[Lion]

Sale proceeds from Form 1099-S. Cost basis from DOD value plus improvements since he inherited it. Inherited property is defined as long term. If your client inherited the house and then sold it and received Form 1099-S in his name and SSN.

If estate sold house and received Form 1099-S, then estate reports the sale.

[Burke]

It sounds like a simple inheritance of a capital asset, if he never lived in this home. As Lion said, put on Sche D. Sales proceeds is the amt on 1099B in his name. (This may be a percentage if it was split by more than one sibling -- check to make sure. If not, divide by the number of siblings.) Cost is FMV on date of death plus costs of sale divided by the number of siblings which inherited the property. Costs are on the HUD-1. Then he has a gain or loss, long-term.