Category Archives: Inheritance

Lakefront Property

Today TaxMama hears from Carol in New York who tells us. “ I inherited lakefront property in 1999. I recently sold it for $60,000.00 and I am holding the mortgage with payments being made of $600.00/month. Do I have to report the sale; and how will taxes be calculated?”

Sale of Inherited Home

Today TaxMama hears from Dottie in Massachusetts with this question. “Does the maximum personal residence exclusion apply to someone who inherited a home, had it for 370 days, sold it for a long-term capital gain and received a K-1? He and his dad had lived in the home for 10 yrs previously.”

Coin Collection

Today TaxMama hears from Tarquin in New Orleans, with this problem. “I inherited a coin collection. The estimated basis I got was $70,000. But the collection sold for $90,000 a few months later. I calculate that I now owe $5,600 in capital gains taxes. But I know that coin prices have been falling. Therefore, the […]

Rental Property

Today TaxMama hears from Sue in Nevada with a couple of questions. “I inherited rental property and must prepare for the 2008 tax return. Do I use fair market value as the cost basis in figuring the depreciation? Also, how do I calculate depreciation?”

Inherited House

Today TaxMama hears from Don in Texas who tells us, “My brother and I inherited a house in 2004 from my aunt. Neither of us have ever lived in the house, nor have we rented it out. We sold the house in 2007 for $10K less that the FMV upon the death of my aunt. […]

Inherited Farm

Today TaxMama hears from Gloria in Florida who wants to know. “My daughter inherited a small farm from her father last year and wants to sell it. What would her tax liability be?”

Is Inheritance Taxable

Today TaxMama hears from Manny in NY has a question that comes up often. “I will be buying a house in NYC and my wife inherited six figures from her grandfather. We plan to use that money for the down payment. Is this inheritance tax free? Or will it be taxed on our 2007 tax […]

Family Death During Year

Today TaxMama hears from Fran in the Tax Parlor, who tells us. “My mother died in 2006 and received Social Security monthly, getting about $700 per month. In addition, she had investments totaling about $60,000 that paid less than $5,000. Do I need to file a return? If so, what info and forms do I […]

After Death

Today TaxMama hears from Cheryl in Kansas who wants to know, “Do you have to file an estate return when the whole estate is going to be less than $200,000? There are 3 heirs (1 in Kansas and 2 in Texas). The assets include the funds from the sale of the house (about $145,000) and […]

Investment, Inheritance or?

Today TaxMama hears from Tony with this story, “My friend’s mother recently sold her father’s home (he is elderly). He gave her power of attorney to sign off on everything, and she kept the proceeds of the sale.* Would this house be considered inherited property, invested property, or anything else for my friend’s mother?”