I sold my mother's house in Ky. Do I include it on my taxs?
I was the executor of her will. I sold it and disbursed the money left after closing and lawyer fees to my siblings according to my mother's will. How do I deal with this on our taxes this year?
Answers
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Hi Djroot,
At the time of your mother's passing and you inherited the house, the basis of the house was "stepped-up" to the current fair market value at the time of her passing.
When you report the sale of the house on your tax return, report the investment sale with your share of the sales price and the cost as your share of the step-up basis. Your siblings should do the same. Keep in mind that the sale could create a loss.
Your share and sibling's share of the closing cost may be subtracted from each share of the sales price.
If you have a profit on the sale, which meets the threshold for a KY return, you may need to file a KY personal return. Check the filing requirements for KY.
