Brother and sister bought a home in the 1980's. Brother died in 2009 and 92 year old sister (living) sells the house in 2024 for $515,000. The proceeds of the house were divided among 9 family members, my client being one of them. She received a 1099 S for her share about 30,000.
How and where do I report her proceeds?
Sounds like.................... your client inherited a portion of the brothers 1/2 of the house and he received a 1099s for that share?
if so, you need the stepped up basis for the portion your client inherited as of DOD and your clients portion of (if any) of expenses, etc. Report on Sch D.
Quick general rule, step up basis divided by 9, report transaction on sch.D
you know you should have a general knowledge of the stuff and save the life line of the community for the hairy stuff. Only my 2 cents.
@Camp1040 wrote:
Quick general rule, step up basis divided by 9, report transaction on sch.D
you know you should have a general knowledge of the stuff and save the life line of the community for the hairy stuff. Only my 2 cents.
How do we know the 9 does not include the sister, and maybe the sister's children also? You should have a general knowledge of what to ask before a quick guess. And it's a better question than the guy who recently asked about rolling over gain to a new primary residence.
@BobKamman You're right, that's why the preface of a quick rule with very limited information on hand, and I did not want to ask questions of the OP at this time.
Don't give someone a glass of water when their real problem is hydrophobia. Many of the questions here should be prefaced with, "What else do I need to ask my client?" (Sometimes, it should be "my client has given me way too much information, what do I really need in order to do the tax return?") Speaking of rabies, I think some preparers have been bitten by a client and are now afraid to approach any for more information.
Having said that, let's assume that these people created the biggest mess possible, because that's usually how it turns out. My guess is that the brother left his sister a life estate, with remainder to his kids. Then the sister, thinking she might need the county to pay her nursing home, gave her kids a remainder interest in her half, keeping a life estate. So how did this client acquire title, when, and what was it? (We know it wasn't an even 9-way split because she got only $30K out of $515K.) And what did she have to sign in order to get it, or did someone just forge her signature on a quitclaim deed?
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