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Old 01-20-2018, 10:17 AM
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Capital gains basis and multiple heirs

Hello, first timer here. My family has sold a property which had three heirs via three siblings one of whom is still alive. The other two heirs are children of the passed away siblings whose parents died at different times. The timeline goes as follows.
House built in 1893.
Past on to grandmother at some point.
Grandmother wills it to three children in 1984.
My mother who died in 2004 with me as only heir.
My uncle who died in 2015 with three heirs.
My aunt who is still alive today.
No heirs have lived in house since my moms death in 2004.
So, how will basis be figured for the heirs? Thank you



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Old 01-22-2018, 10:42 AM
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Past on to grandmother at some point.
Grandmother wills it to three children in 1984.=========>.Then, to determine if the sale of the inherited property is taxable, you must first determine the basis in the property. The basis of property inherited from a decedent is generally one of the following: The fair market value of the property on the date of the decedent's death; So, for example, if Uncle Harry bought Kodak stock in 1935 for $500 and it's worth $5M at his death, the basis is stepped up to $5 M,NOT $500,in the hands of his heirs and all of that gain escapes income taxation forever.Although the above discussion refers to the date of death value, the rule is different in some cases. Where the decedent's executor makes the alternate valuation election, then basis will be determined as of the date 6 months after the date of death (or, if the property is distributed or otherwise disposed of by the estate within the six month period, the date of distribution or other disposition).


My mother who died in 2004 with me as only heir.===>Then you inherited the home in 2004, then The fair market value of the property on the date of your mother? death is the basis of the inherited home



My uncle who died in 2015 with three heirs.=======.their basis of the inherited home is the 2005 FMV.
My aunt who is still alive today.=====>her basis of t he inherited home is the FMV of the time when her mother died


No heirs have lived in house since my moms death in 2004.
So, how will basis be figured for the heirs?===========>> When you sell the property you?ve inherited, your tax basis for the property is the home?s value on the day the person who willed it to you died. The difference between that value and the amount you realize from the sale is the gain on which you owe taxes. When several siblings inherit equal shares in a property, they divide the gain equally and each claim that share on their taxes. So, if the home was worth $300k when Mom died and you sell for $345k and three siblings inherit, each claims a $15k gain. If you sell for the value of the home or less, you don?t have a gain to report



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Old 01-22-2018, 06:43 PM
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So just to be sure I understand this.The selling price was $62000.
Two heirs received $20666.67 each. Third heirs received $20666.67 split into three checks.
1.Three Heirs from their dads date of death [2015] FMV was $92539. So they have a loss?
2. My basis [2004] FMV $50771 leaving a $11229 gain? Is that subject to 25% tax?
3. My aunt's basis [1985] I have no idea how to establish. Any help there would be appreciated. She is 79 by the way.
Or did the FMV of 2018 [$83606] leave all of us with no gain? Thanks.



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