Ask Experts Questions for FREE Help !
Ask
    bobbysgirl12's Avatar
    bobbysgirl12 Posts: 5, Reputation: 1
    New Member
    		  
    #1

    Feb 17, 2011, 08:44 PM
    Claiming a loss on inherited property
    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's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #2

    Feb 17, 2011, 09:03 PM

    Loss on personal property is not deductible.
    If it is rental property, then may be.
    bobbysgirl12's Avatar
    bobbysgirl12 Posts: 5, Reputation: 1
    New Member
    		  
    #3

    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's Avatar
    ebaines Posts: 12,131, Reputation: 1307
    Expert
    		  
    #4

    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's Avatar
    bobbysgirl12 Posts: 5, Reputation: 1
    New Member
    		  
    #5

    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's Avatar
    bobbysgirl12 Posts: 5, Reputation: 1
    New Member
    		  
    #6

    Feb 18, 2011, 10:01 AM
    Comment on bobbysgirl12's post
    Oops! The REAL PROPERTY TAX seems to be 1% of the am't house was sold for.
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
    Expert
    		  
    #7

    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's Avatar
    bobbysgirl12 Posts: 5, Reputation: 1
    New Member
    		  
    #8

    Feb 18, 2011, 01:50 PM
    Comment on ebaines's post
    Thank you again. All responses have helped me greatly.
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!

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.

If loss on sale of inherited property is not deductible, how do you report 1099S? [ 2 Answers ]

Sale of inherited property

Loss Deduction: Can a loss from an inherited residence be deducted for taxes? [ 2 Answers ]

Loss deduction: Can a loss from the sale of inherited property be deducted for federal taxes?

Claiming a loss from the sale of inherited property [ 19 Answers ]

I have talked to at least a dozen different people, including four people at the IRS and two CPA's, and I can't seem to get an unequivocal answer to my question. I inherited my mother's house in late 2007 and sold it at a loss four and a half months later. I have a qualified appraisal to...

Who pays back property taxes in inherited property [ 5 Answers ]

I inherited 51 acres in West Virginia from my father who has died in March of last year. It is being transferred to me on Friday. The 2008 property taxes have not been paid. The will is going through Probate Court in Georgia now. Should the estate of my father pay the back taxes as the will is...

View more questions Search