how do u file inheirited property you sold for capital gain on taxes?

Answer 1

Your basis in the property is generally the basis on the date of the bequestor's death. In some cases the executor of the estate may use an alternate valuation date (to minimize estate tax) and if that was done you'll have to use the valuation on that date.

Your gain is the difference between your basis and what you sell the property for after deducting the costs of the sale such as the agent's commission and certain seller paid closing costs.

One feature of the gain on inherited property is that it is treated as long-term regardless of how long you held the property. This means that it will be taxed at the lower long-term CG rate, normally 15%. If your marginal rate is already 15% or less the rate drops to 5%.

File Schedule D with your Form 1040 return to calculate the gain and the tax due.

Answer 2

Memphis its quite easy, you first calculate your cost basis which is the
Valuation at the time of decesased passing + Cost of Improvements You made To The Property + Cost of Sales (realtors commission, advertising etc.) = Cost basis

Once you have that figure you should deduct it from the sale price then thats your capital gain or capital loss. Assuming you made a gain then you would now complete the Schedule D Form 1040. You can download the form quite easily.

However dont take my word for it check with the expert from Capital Gains Taxes.Info here: http://www.capitalgainstaxes.info/capital-gains-on-inherited-property/
Best Of luck !

Answer 3

First you have to determine the value of the property on the date you inherited it. (normally the date of death not the date probate finished) Real estate you can get comparable sales figures as of the date of death or if you had an appraisal done. For stocks you can check historical stock quotes as of the date of death.

Once you determine the value at the date of death that is your basis in the property. You would then report the capital gain on a schedule D by taking the sales price and reducing it by your basis. The net difference is subject to capital gains tax

Answer 4

a buddy is attempting to promote their sources in Costa del sol and its no longer basically capital constructive factors tax its something to do with community tax for the years they have owned it. offered 25 years in the past for 7thousand valued now 90thousand if promote the get round 20thousand after paying Spanish council tax, so get specialist help.