We received money from the sell of my father in laws house.
How can I claim it on my taxes?
Is there a limit? Where do I find the info I need?
2007-02-03 08:07:16 · 3 answers · asked by cindyllucien 2 in Business & Finance ➔ Taxes ➔ United States
If the house was sold by the estate and you received the proceeds, you owe no tax on that. Inheritance taxes are paid by the estate. The beneficiary (you) never pays any tax on the inheritance.
If the home was deeded to you and you subsequently sold it and pocketed the proceeds, your basis (cost) is the value of the home when you received clear title to it. If you sold it for that amount or less, there is no gain and no tax is owed. On the other hand if you sold the home for anything above your cost basis you would owe tax on the gain only.
For example, if the value of the home was $200,000 when you took title and you you sold it for $220,000, your taxable gain would be $20,000. If you owned it for less than 1 year the gain would be taxed as ordinary income. If you owned it for more than 1 year, the gain would be taxed at the lower long term capital gains rate, 15% for most taxpayers.
2007-02-03 08:21:02 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 0⤋
Look in the Blue Pages of your phone book under US Government. There you will need to look for the Internal Revenue Service Taxpayer Assistance Division and see which office is closest to you. They will not only answer all your tax questions,but also fill out all necessary forms and file your taxes for you for FREE! Bring some ID and your Social Security card along with all paperwork,W-2's.
2007-02-03 16:18:02 · answer #2 · answered by Anonymous · 0⤊ 2⤋
in your dreams maybe? if this is about an email you recieved it's B.S. Very common scam.
2007-02-03 16:15:24 · answer #3 · answered by Laurie M 3 · 0⤊ 2⤋