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    Debby Tennison's Avatar
    Debby Tennison Posts: 1, Reputation: 1
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    #1

    Apr 8, 2012, 11:12 AM
    Selling property that was inherited to a sibling
    When our dad died in 2006 3 of us kids inherited 90 acers. My portion was 20 acers- bear land- valued at 40,000.00 at the tim I inherited it. I have been paying property taxes since. My brother wants to purchase it from me for 40,000.00.
    My questions are:
    We do not intend to go through a realitor, we will draw up a contract between us for the terms of sale, then transfer the title when it is paid off. There will be no interest charged. Do we have to go through a realitor, or can we just do a title change at the end of payments, and if I sell it for the amount it was valued at the time of inheritance would there be capital gains for me to declare? Do I have to notify the IRS that I sold the property?
    Thank you for your help
    tickle's Avatar
    tickle Posts: 23,796, Reputation: 2674
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    #2

    Apr 8, 2012, 01:09 PM
    You may not need a realtor, but you may need a lawyer to advise you on the proper paperwork, otherwise some of this, done privately and without solicitation may come back to bite you on the butt. Even between siblings problems arise.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #3

    Apr 8, 2012, 01:31 PM
    You don't need a realtor, but I would suggest having an attorney draw up the contract. Then have the lawyer or a title company do the transfer of title when the contract is fulfilled.

    You will have to report the sale on your return. but if the sale is for the cost basis or less then there would be no tax liability.
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