preparin 2006 tax return for sale of inherit house?

Question

how do we report net gain to irs on form 1040?
House inherit dec 2005 value at 62000 and sold
march 2006 for 75,000 to be split three ways.
received 1099S showing my share at 22,000.

Answer 1

$22,000 is your share of what? Split 3 ways, a $22,000 share equals a $66,000 total. That appears to be the net proceeds. Your basis in your share should be $20,670. That gives you a $1330 capital gain. I am not certain if you treat a gain on inherited property as a long term gain or if your have to take a short term gain because you actually owned the property for less than a year. Someone else will have that answer.

Answer 2

You take your share of $22,000 on Schedule D as a sale, though I don't know how it is $22,000 being 1/3 of $75,000. The sale price, anyway, is the $22,000, your cost/basis is 1/3 of the $62,000; your gain is a little over $1,000 and it is a long term capital gain as inherited property is always long term