My husband inherited his moms place and home. She passed away two years ago. The place was valued at 66,000.00 He sold it for a cash deal of 38,000.00 Do we have to pay taxes on this at of money? Wright

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Originally Posted by msbetty

My husband inherited his moms place and home. She passed away two years ago. The place was valued at 66,000.00 He sold it for a cash deal of 38,000.00 Do we have to pay taxes on this at of money? wright

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He would have a capital gain if the property sold for more than its cost basis, which was $66K (fair market value as of his mother's date of death). Since he sold it for less, there is no capital gain, so no taxes on it. Assuming that this was personal property (not rented out or used for business) he cannot claim the loss, as losses on the sale of personal property are not deductible. But he should still report the sale on his tax return next year - he will show the gain (loss) as $0. That way the IRS won't accuse him of failing to report the sale.