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Client inherited proceeds from sale of parents home

kabbabkkg
Level 3

I have a client who has received a 1099S for the proceeds of the sale of deceased parent's

home.  I have not had one of these in a long time.  Do I just put on Sch D as Inherited Home the basis and sale the same amount?  I have no other information on the sale of the home.

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Just-Lisa-Now-
Level 15
Level 15

You need the client to get that info for you, maybe the realtor that helped with the sale can get a FMV at DOD for them....generally if they sell within a year the value wouldnt change much, but with housing prices as crazy as they are, you never know.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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14 Comments 14
sjrcpa
Level 15

There's a settlement sheet that was issued at the same time as that 1099-S.

Basis = date of death FMV which may not be the same as the sale price.

The more I know, the more I don't know.
Just-Lisa-Now-
Level 15
Level 15
so the 1099S is in your clients name and SSN? How long ago did they inherit it?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
kabbabkkg
Level 3

They have 3 and they are all made out to the taxpayer with his social security number

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kabbabkkg
Level 3

The parent passed 4/18/20 there are 6 siblings

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Just-Lisa-Now-
Level 15
Level 15

I saw your other post about the "how" do you report it.

Report it on Sch D, use the 1099B worksheet, and make the entries, just like you would have with the old style Sch D.  The entry sheet is similar.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
kabbabkkg
Level 3

I have a copy of the Seller's Closing Statement which shows the Contract sales price.  The date of death was 4/18/20 there is nothing saying what the FMV is of the properties at the time of death.

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Just-Lisa-Now-
Level 15
Level 15

You need the client to get that info for you, maybe the realtor that helped with the sale can get a FMV at DOD for them....generally if they sell within a year the value wouldnt change much, but with housing prices as crazy as they are, you never know.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
kabbabkkg
Level 3

Thank you that is what I was going to do but was not sure it was the best format.  The FMV will be the sale price?

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kabbabkkg
Level 3

Meant to say the basis for the home and properties.

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kabbabkkg
Level 3

Thank you Lisa I will see if they can get that from the lawyer who handled the estate.

 

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rbynaker
Level 13

Did anything have to go through probate?  There may have been a FMV filed with the probate court.

kabbabkkg
Level 3

I contacted the client they have other papers, and they are going to look to see if there is anything about the FMV if not they will call one of the other siblings that was involved in getting it all together

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marti567
Level 1

If the home was sold for $214,000 and proceeds were split between siblings, do you report the total sale amount? or just the 1/3 that is showing up on the client's 1099s?  
FMV at DOD was $200,000

also, once the info is put into the 1099-B worksheet and flows over to Schedule D, does the data on the 1099s have to be input anywhere else? 

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Just-Lisa-Now-
Level 15
Level 15
whos SSN is on the 1099S?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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