i got a 1099s from sold inheritance property what do i do?

Question

got it in 1997 sold it last year

Answer 1

You claim the gain in Schedule D. Your basis is the value of the property when the testator died plus any improvements you've made. Subtract that from your net proceeds and the remainder is your taxable gain.

If you lived in the property as your principal residence for 2 of the 5 years immediatetly prior to sale you may be able to exclude all or part of the gain. If your filing status is Single the exclusion is $250,000. If your filing status is Married Filing Jointly the exclusion is $500,000.

If you rented the property out you'll have to recapture any depreciation allowed or allowable. That will reduce your basis and increase your taxable gain.

Answer 2

Your basis is the cost when you inherited it. It doesn't matter any more how you acquired the property, that it was inherited - you'll pay taxes just like if you had bought the property in 1997 for the amount it was valued at then.

If you lived in the property as your main home for two out of the five years immediately before the sale, you can exclude part or all of the gain from being taxed.

Answer 3

You will need to determine your cost basis and you will owe tax based on the difference. The cost basis is the date of death transfer value. You should have an appraisal or estimate of value that was included in the estate.