Hi, all, my client's father passed away and left a house that was in his name and my client's name. My client sold the house, he never lived in it, the 1099S came in his name. He divided the capital gains amongst his siblings. How do I report this?

[Lathanna]

How, do I report the sale of the house so that he doesn't have to pay capital gains taxes?

His father didn't leave a will

[Just-Lisa-Now-]

The sons basis (assuming he wasnt on the title at the time of death) will be the stepped up basis (FMV) at the date of death.

The you'll use SCh D, 1099B worksheet, scroll passed the brokerage info at the top.

Sale of Inherited property, date acquired will be Inherited, purchase price FMV at DOD, sales price, youve got the 1099S. You can double click, on the entry line and make adjustments to basis for the closing costs.

[Lathanna]

Hi, Just-Lisa-Now, his name was in the deed. and the 1099S is in his name

He never lived in the home or made payments

[Lathanna]

Thank you for your help

[Just-Lisa-Now-]

So his and the fathers name was on the deed at the time the father died? So he only inherited half of the property.

You wont get full stepped up basis then, only on dad's half. Your clients half will still have the original basis, plus any improvements.

There may very well be gain on the sale.

[qbteachmt]

"He divided the capital gains amongst his siblings."

So, he gave away his own money?