My husband inherited a house in 2007. Value (per assessor $72,300). After fixing up the home he started renting it in January 2008. He sold the home January 1, 2009 with closing in February 2009. Home sold for $60,000. We now need to file the final taxes on this property. Can we take a loss on the property? We never paid an estate tax on it. What will my tax preparer need from us insofar as paperwork on the sale? TY for your response...

What do you mean by final taxes on this property?

You would not be required to pay estate tax in NYS.

There appear to be Federal income tax consequences; i.e. a capital loss deduction.

Basis is $72,300, so the loss would be $12,300 plus closing costs, if any.

Your accountant might want to also factor in fix-up expenses, etc. so bring receipts for that.