ETax847 Posted March 7, 2014 Report Share Posted March 7, 2014 Client received a 1099-S for the gross proceeds from a sale of a property that he inherited. Is this taxable and where should it be reported? Any help would be greatly appreciated. Quote Link to comment Share on other sites More sharing options...
jklcpa Posted March 7, 2014 Report Share Posted March 7, 2014 Yes, you should report it, and the answers of where and how depend on how the property was used from the date he inherited until it was sold. If he never lived in it and it was not a rental, then it's reported as an investment property in the long-term on Schedule D with the date acquired as "inherited". If it was his residence during that time, you treat it as such and go through the motions of determining whether or not this person is eligible for a partial or full exclusion of the gain under sec 121. If a rental, then you have the disposition of it as a depreciable asset. Quote Link to comment Share on other sites More sharing options...
jasdlm Posted March 8, 2014 Report Share Posted March 8, 2014 If it is inherited, you will need to figure out if an appraisal was done at the date of death so you can start your basis calculation. Quote Link to comment Share on other sites More sharing options...
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