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bobbysgirl12 · Feb 17, 2011, 08:44 PM

In a nut shell: Inherited property sold at no gain. 3 children. Can I add 1/3 of the closing costs to the stepped up basis (my cost) which will then show a capital loss? Can I CLAIM the loss on my 1040? Cannot seem to get a definite answer. The IRS tends to indicate that I cannot. Tax accountants say I can.

MukatA · Feb 17, 2011, 09:03 PM

Loss on personal property is not deductible.
If it is rental property, then may be.

bobbysgirl12 · Feb 18, 2011, 07:59 AM

THANKS! I agree. When my mother-in-law passed it was her RESIDENCE and the family had no intention to rent it out to another or a family member so it remains PERSONAL. There was very little put into the house before it was put up for sale so there's no gain there either. However, the REAL ESTATE TAXES we paid on her residence at the time of closing which was a total of $3800 (my husbands portion $1266.66) - can they be deducted on Schedule A under Taxes ("Other taxes")? Many thanks for your kind assistance. Have a great weekend!

ebaines · Feb 18, 2011, 08:54 AM

If your husband paid real estate taxes on a property he was a part-owner of then yes, he may deduct it.

bobbysgirl12 · Feb 18, 2011, 09:52 AM

Thank you! Now one more question - I promise! Is REAL PROPERTY TAX (as I understand it, it is 10% of the price the house was sold for) the SAME as REAL ESTATE TAX and can THAT be deducted under 'Other Tax'?

bobbysgirl12 · Feb 18, 2011, 10:01 AM

Oops! The REAL PROPERTY TAX seems to be 1% of the am't house was sold for.

ebaines · Feb 18, 2011, 10:11 AM

I believe that a "Real Property Tax" is just another name for real estate tax . As long as the amount of tax is based upon the assessed value of the property and is charged uniformly against all properties in the jurisdiction, then it is deductible.

bobbysgirl12 · Feb 18, 2011, 01:50 PM

Thank you again. All responses have helped me greatly.