[misssy617]

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...

[JudyKayTee]

What do you mean by final taxes on this property?

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

[AK lawyer]

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.