My father has given his home to my brother and me. We are in the process of selling it. It will sell for less than $30,000. We have made extensive repairs out of our pocket. It has been rented for over 6 months before it was put on the market. What are my tax obligations after the sale? I suggest you hire someone to handle this for you.If you want to do it yourself, start by figuring the basis. Your (yours plus your brother's) basis is your father's basis plus any capital improvements you made.Once you have the basis you can figure your rental income and expenses, which includes repairs and depreciation. You report the rental side of things on Schedule E.Once you know the adjusted basis and the depreciation, you can figure your taxable gain or loss, which will likely be long-term (except for the depreciation recapture) because your holding period is the same as your father's.See Publication 527 for starters.Phil MartiVITA Volunteer
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra