Inheritance

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Davesmith
Davesmith Member Posts: 1 Newcomer

Do I need to claim proceeds from my deceased father’s house which is out of state?

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  • JMSSGV
    JMSSGV Member Posts: 74 Level 5
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    Depends on a number of factors you didn't mention. How did ownership of the house pass when your father died—to you, to another person, to his estate?

    How long after he died was the house sold?

    If by "proceeds," you mean the money you received — that number is irrelevant. The question is whether or not there was a capital gain on the sale of the house.

  • KeriC
    KeriC FreeTaxUSA Agent Posts: 93
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    Typically, you will report the sale of an inherited home as a capital gain (or loss) as if it were a long-term investment, regardless of the holding period. The link below contains helpful information on reporting it.

    https://www.irs.gov/faqs/interest-dividends-other-types-of-income/gifts-inheritances/gifts-inheritances

    You would want to consult the state tax laws for the state where the property was located to determine if you have a filing requirement for the state or not.