The father of my client died last year. He had 8 children. His home was valued at $175,000 on the date of his death.
Daughter A bought the house for $70,000. She gave each of her siblings a check for $10,000. She also paid several thousand dollars on attorney's fees and title work, etc.The house needed much work done to it, but it sits on a couple of acres on a private lake.
Each of the siblings got a 1099S for $10,000.
One of the siblings wants me to do her tax return. 2 of the other siblings have already had their tax returns prepared and their tax person took a loss on the sale of the property.
I asked on another board and was told that since it was sold to a related party the loss is not allowed, but some have already taken the loss.
So which way is correct?
Thanks, Linda
Daughter A bought the house for $70,000. She gave each of her siblings a check for $10,000. She also paid several thousand dollars on attorney's fees and title work, etc.The house needed much work done to it, but it sits on a couple of acres on a private lake.
Each of the siblings got a 1099S for $10,000.
One of the siblings wants me to do her tax return. 2 of the other siblings have already had their tax returns prepared and their tax person took a loss on the sale of the property.
I asked on another board and was told that since it was sold to a related party the loss is not allowed, but some have already taken the loss.
So which way is correct?
Thanks, Linda
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