Message Font: Serif | Sans-Serif
No. of Recommendations: 1
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 Marti
VITA Volunteer
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.