rlennon
Level 2
06-15-2020
10:47 AM
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Client received Form 1099-S, amt $52,000. Sale of condo ($311,000 net) directed by terms deceased father's will.
Proceeds split among 4 relatives. Are proceeds taxable? If so, are they long-term?
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abctax55
Level 15
06-15-2020
11:24 AM
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1) The net is irrelevant.
2) The proceeds aren't taxable, but any gain is (after considering stepped up basis & selling costs). Term on the gain goes back to term as held by father (so likely long-term).
3) Any loss (after considering stepped up basis & selling costs) may or may not be deductible.'
4) $ 52000 x 4 = $ 208,000 yet net proceeds are $ 311,000 ? Something doesn't math.
HumanKind... Be Both
rlennon
Level 2
06-15-2020
11:43 AM
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Thanks for help. (Widow received $147,000.) Will apply updated basis amounts to amount received.
