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Level 4
December 6, 2019
Solved

Sale of inherited property. surviving spouse who was not the beneficiary living in it for several years who paid all expenses. beneficiaries never had use of the proprtyd

  • December 6, 2019
  • 7 replies
  • 41 views

Sale of inherited property in 2017.  Dad died in 2013; surviving spouse who was not the beneficiary lived in the house until recently then moved which freed up the house for Dad's daughters to sell--at a loss.  Surviving spouse paid all expenses until the day she moved out.  No rent ever paid to the owners (daughters). Daughters did not have access to the house at all. The CPA for one daughter said it is personal use property and therefore no  deduction on personal use property. My contention is that the daughters did not have any access to the house personally.  Any thoughts??

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Best answer by IRonMaN

"which freed up the house for Dad's daughters to sell--at a loss"

Which means they couldn't sell it at a gain earlier because they let mom use it.  Sure sounds more like personal property than investment property.

7 replies

IRonMaN
IRonMaNAnswer
Level 15
December 6, 2019

"which freed up the house for Dad's daughters to sell--at a loss"

Which means they couldn't sell it at a gain earlier because they let mom use it.  Sure sounds more like personal property than investment property.

Slava Ukraini!
tammieAuthor
Level 4
December 6, 2019
Was not mom living there;  second wife.  Dad's will states that wife can live there until she dies or decides to move out.  Wouldn't personal use property mean that they could use the property for themselves.  Legally they did not have access to the house until she moved out.   When she moved out they had to repair and provide improvements in order to sell
Level 7
December 6, 2019

When you let a relative use a house at less than Fair Market rent, it is personal use.

tammieAuthor
Level 4
December 6, 2019
Was not a relative but a second wife for Dad.  Dad's will states that she has the right to live there until she dies or decided to move.  No access to the property until she moved out in March at which time the daughters worked on the house to sell.