Mining property was recently sold. This property was held in an estate, and as one of the living relatives, received a portion of the proceeds from the sale of the property. How are the proceeds reported. Don't know if there was a loss or gain on the sale of this property. Are the proceeds reported as Miscellaneous Income?
2007-02-02 03:57:45 · 2 answers · asked by Addison H 1 in Business & Finance ➔ Taxes ➔ United States
Assuming that you received a distribution of an estate through probate, it's tax free to you. Enjoy!
If the property was deeded to you through probate and then you subsequently sold it yourself, your basis is the value of the property when you received legal title to it. If you subsequently sell the property for more than that amount your gain may be taxable. It's reported as a capital gain and the tax implications depend upon how long you owned it.
2007-02-02 04:03:55 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 1⤋
the amount you receive as an inheiratance is not taxable to you, only to the estate. If you invest the amount you receive or earn interest on the money then you would owe taxes on your interest only. Hope this helps.
2007-02-02 12:05:59 · answer #2 · answered by Cherri B 1 · 0⤊ 1⤋