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Old 02-03-2010, 11:18 PM
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Selling of a Home

My wife, along with her sisters and brothers, received an equal disburstment from the sale of their mother's home in which she owned 1/2, and the other 5 siblings each received 1/10th of the total proceeds which was a total of $6,100.00. Each sibling also received a 1099-S FORM which shows the gross proceeds as being $66,000.00. This is what the house was sold for.

Each sibling signed over there check back to their mother who then used that money, along with her share and purchased a new home.

My question is;; Does the $6,100.00 have to be claimed as any kind of income or capital gains, or, being that we donated the money back to her, are we exempt for the $6,100.00?



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Old 06-01-2013, 12:12 AM
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As far as I am get understand that you shouldn't to give back the amount to your mother. It is your inheritance right that you have got the $6100 amount. It is only for you but if you are want to donate it so it is your right that how you are proceed with it.

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Last edited by Thomas Jacusy : 06-06-2013 at 06:52 AM.


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Old 06-01-2013, 03:51 AM
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Originally Posted by Mike3600 View Post

My question is;; Does the $6,100.00 have to be claimed as any kind of income or capital gains, or, being that we donated the money back to her, are we exempt for the $6,100.00?
As long as she sells her main home at a gain, and has lived in it for at least two years during the five-year period ending on the date of sale, she can exclude the gain from taxable income up to a maximum exclusion of $ $250K exclusion for a single person.So as long as it is her main home(her name was on the deed as she owned 1/2) co-owned with her siblings, then $6,100 is part of LTCG( as I assume that the selling price of the home exceeded its adj basis) and doesn’t need to report it on her return(on joint return with you) and she doesn’t need to file Form 709 on the money of $6,100 to her mother as $6100 is smaller than annual gift tax exclusion of $13K for 2013. However, if the home home in which she owned 1/2is NOT her main home , then she needs to report it on her return as LTCG taxed 15% if her marginal tax rate is 25% or higher.HOWEVER,as long as she and her siblings inherited it, then, generally, the value of inherited property is not considered income, so no tax would be due simply because of the inheritance, at least at the federal level.


Last edited by Wnhough : 06-01-2013 at 04:22 AM.


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