What this means is that when you received the property as your inheritance, the “cost” for calculating the gain on the sale is the same as the market value on the date that your parent passed away. When you inherit real property, like a home, then for tax purposes the beneficiaries receive what is called a “stepped-up” basis. If the property was located in Georgia, you may want to consult an attorney who is familiar with local property laws and estates, even though the property has already been sold, as the transfer of the title might not be valid.īut assuming the beneficiary deed was valid and that you and your sisters had the ability to sell the property under that deed, the good news is that this is not likely to result in taxes due on the sale. If the property was in another state where the deed was valid, you may need to file a nonresident return in that state because the sale proceeds would be considered income from that state. Based on research, it appears only about 13 states allow property to transfer in this manner. I'm saying this because my research indicates that Georgia does not allow property to be transferred after the death of the owner via a beneficiary deed. Second, I’m going to assume that the property was located in a state other than Georgia and that the beneficiary deed was valid. Thank you for contacting TaxAudit regarding your question about selling your parent’s house after you received it via a beneficiary deed.įirst, I’m going to assume that you have already confirmed that you have no estate tax return requirement. How do I put this in my return for IRS but not pay taxes on my share of the home proceeds? Home owned by parents for 30 years.

Money should not be taxable as estate under 1 million.

Left home to four daughters through a beneficiary deed.

Ca tax form 1099s real estate mailings