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Old 04-09-2015, 08:59 PM
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Join Date: Nov 2014
Posts: 2
Sale of Inherited Property

Hi Everyone,

I inherited a property Sept. 2013 from my mother in Oregon. The place was not in great shape but I managed to get it up to speed for sale. There were liens and claims against the property from creditors and the only way to sell it was to create a small estate affidavit to pay everyone out of the sale. The total costs on the property liens, everything were $172K and I sold it Oct. 2014 at 189K. I received a check from the title company for 17K.

So about a year from inheritance to sold...17K was left after creditors, expenses...and the IRS sends me a Proceeds from Real Estate Transactions 1099-S with $189K under gross proceeds. The comps done on the property show it to be worth $200K market value.

How do I report all this folks?

Key takeaways here: the real estate comps show the property was worth around $200K and I sold it for $189K. The 1099-S just said “gross proceeds $189K” so 1) how do I go about reporting this sale on my return? 2. I paid out taxes during closing costs on the property about 8K owing in back taxes (over 3 years) on the property including paying Jan to Oct taxes for 2014 of about $2,000 as my “second property”. Can I report this as property tax paid on the second home?

Appreciate your time!



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