Ask Experts Questions for FREE Help !
Ask
    DUSTMANN1's Avatar
    DUSTMANN1 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Feb 5, 2012, 09:49 AM
    Do I have to Claim land on taxes that was inherited?
    My husband and I inherited 19 acre of land from his uncle. The property got sold. How do we figure how much taxes are owe? The property was sold for 2200 an acre but the land was appraised at 5200?
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #2

    Feb 5, 2012, 07:56 PM
    Your cost basis is the fair market value of the land on the date of inheritance. It appears that you sold it for price less than your cost basis. You have long term capital loss. File schedule D (form 1040) and report the loss.
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
    Expert
    		  
    #3

    Feb 6, 2012, 07:00 AM
    I must take issue with Mukata's answer. You should report the sale on Schedule D and on Form 8949 if you receive a form 1099-S that documents the sale, using the fair market value as of the date of death of the decedant as its cost basis. But if the sale is a loss you show the loss as non-deductible on form 8949 (code "L" in column b), because you cannot take a loss on the sale of private property (I assume the land was not used for business purposes).

    The instructions for reporting the sale if you have a loss and receive a form 1099-S are attached. This is from the instructions for Schedule D: www.irs.gov/pub/irs-pdf/i1040sd.pdf

    If you do not receive a form 1099-S, there is no need to report the sale.
    Attached Images
     
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

My mom died in 2003, with land given to her by dad. Can I still claim the land now? [ 2 Answers ]

My mother's father who lived in Louisiana passed away and left her land in Louisiana. My mother passed away in 2003, and now the land has been left to me. Do I still have right to claim what is rightfully mine. Thank you, Derinda

Sold inherited property by land contract what kind of taxes are due? [ 6 Answers ]

My husband and I inherited his fathers house after his death in 2007. The estate value of the house was $29,500.00. In April of 2009 we sold the house on land contract for $31,000.00. What will the tax obligation be? Would this be covered if using TurboTax to prepare our return?

What taxes on inherited property at $17,000 value. Eight of us inherited it in Ga. [ 9 Answers ]

My Mom passed away and left her home and land to 8 of us. We sold it to one sister for the value of $ 17,000. Our Lawyer was of no help to us. What kind of taxes are we responsible for? This is in Georgia. Our Dad passed away in 2006. Mom passed in Aug. of 2009.

Federal taxes on inherited land that was sold. [ 5 Answers ]

My mother passed away in 2002 and left me and my 2 siblings 2 pieces of property and a house she held the mortgage on. In 2007, we received money from the sale of the 2 pieces of property that were sold and money from an insurance check on the home that burned down in 2007. All of the money was...

View more questions Search