[LCaulkins]

My sister and I inherited our mother's condo on Nov 10, 2005. It was sold on Apr 28, 2006 at a capital gain of $29,823 (adding settlement costs and attorney fees into the cost basis).

We each owned 50% of the property. How do I file my capital gains - do I use Schedule D? I do not see a way to claim only my half. I don't feel like paying CG tax on my sister's half of the profit as well. The instructions for Sched. D are not helpful, nor are publications 550 or 551.

Thanks!

[AtlantaTaxExpert]

I find it extremely hard to believe that the condo appreciated in value by almost $30K in under six months.

You apparently have NOT factored in the stepped-up value of the condo. Your basis for the condo is the fair market value of the condo on the day of your mother's death. Any appreciation the condo had between when she bought it and when she died is FORGIVEN!

You may want to get a professional tax preparer to do your return.

[LCaulkins]

Actually, it is true that it appreciated that much. It was awarded to us at $209K in November (per court documents) and sold for $276 in April. Part of the reason is that there was one of those mudslides nearby that enveloped many homes and this property was away from danger zones.

Another factor is that the property was appraised for the court two full years before the court got around to finally closing the probate (no contests, nothing... just messed-up California court systems).

[AtlantaTaxExpert]

Okay, then use Schedule D to report the gain.

My recommendation to get professional tax help still applies