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sale of inherited house

Linda-Sunshine
Level 3

Inherited a house then rented it out then sold it do I report as house or business asset sale?

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Accepted Solutions
Accountant-Man
Level 13

No exclusion, but since the step up probably wiped out most or all of the gain, then NBD.

** I'm still a champion... of the world! Even without The Lounge.

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8 Comments 8
Jim-from-Ohio
Level 11

Schedule D

Linda-Sunshine
Level 3

So are you saying it doesn't matter if I use home sale or disposition of asset as long as it ends up on Schedule D?

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sjrcpa
Level 15

At the time of sale was it a rental?

The more I know, the more I don't know.
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Linda-Sunshine
Level 3

They allowed a relative to live in the house for a few months. He paid rent. Moved out in April when his house was built, but the inherited house wasn't sold until July.....they did not plan on having a rental and did not try to rent it after the relative moved out.

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Just-Lisa-Now-
Level 15
Level 15

You cant use the HomeSale worksheet, that's for principal residence (Main Home) only.

 


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
abctax55
Level 15

They allowed a relative to live in the house for a few months. He paid rent.

Was the rent at FMV?

HumanKind... Be Both
Camp1040
Level 11

Asset placed in service and removed in the same year, so no depreciation. Claim the rental income and sell it on schedule D as the others have said, with the step up in basis.

Accountant-Man
Level 13

No exclusion, but since the step up probably wiped out most or all of the gain, then NBD.

** I'm still a champion... of the world! Even without The Lounge.