Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 09-16-2010, 10:31 AM
Junior Member
 
Join Date: Sep 2010
Posts: 1
Selling Inherited Property

Recently my mother and her sister were given ownership of some property that their mother had deeded to them. One sister would like to sell the property to the other since she does not have any use for this property. Since the initial sale of the property was $1.00 from mother to daughters and the mother has since died, what tax consequences will the seller have if it is sold for $45,000 to other sister. The state is TN and the county is Davidson (Nashville).

Thanks
JB



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 10-29-2010, 08:25 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
" Since the initial sale of the property was $1.00 from mother to daughters and the mother has since died, what tax consequences will the seller have if it is sold for $45,000 to other sister"---> Actually, your aunts( your mom's sister) and your mom received the property as a gift( your grandma sold her daughters for $1) before she , your grandma, passed away. So the basis of the portion of the property for your aunt is the ORIGINAL COST, I mean the cost when she received it from her mom, NOT FMV at that time; it was a gift, not esate property. So,if she sells the portion of the property, then the amount of the LTCG will be; $45,000, FMV- the original cost; Assume that the original cost of the portion of the property was $5,000 and the current FMV is $45,000, as you said, then LTCG is $45,000-$5,000=$40,000;then your aunt is subject to her LTCG tax to both Federal( if her tax bracket is over 15%, then she shold pay 15% of the LTCG) and TN governments( she should 2.4% on her LTCG).


Last edited by Wnhough : 11-02-2010 at 03:10 AM. Reason: to corfrect it


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
sale of inherited property ? Rateye Capital Gains 7 09-25-2013 05:14 AM
Selling of a Home Mike3600 Homeowner Tax 2 06-01-2013 03:51 AM
Selling an inherited apartment martin1111 Capital Gains 3 08-24-2010 10:50 AM
Capital gain on inherited property gbayes Capital Gains 1 04-11-2010 10:20 PM
Are proceeds received from the sale of inherited property considered taxable income? pinky Income 2 09-13-2007 01:30 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.