inheritance of a home question

OK so I am at a very big lose as to where to turn for help!! Long story but here
I go!!

My father passed away May of 1999. In his will he left my stepmother "life
estate" to the home which was owned free and clear. After the even of her
passing the home was to be sold and divided between my two sisters and myself.
In March of 2007 my one sister called me to say our stepmother was moving out of
the home and was in the process of deeding it back to us (free and clear). Which
was done and the home was placed for sale by owner from March 2007 to Nov 2007,
then the home was placed with a realtor until it was sold July 2008. One more
thing the property is located in WV and I live in MI, not sure that will some
who make a difference.

I was told by the attorney that worked on the transaction I should not have to
pay taxes because of selling the property because the home value was more when
my father passed away. I was told to contact the county and get a copy of the
"Appraisal / Accounting of property" (it's some thing that was files to show
what the property value was at).

I have called / emailed the county a number of times and they are not able to
find any thing at all. They were able to find a copy of the will and "second &
final accounting" for the estate. But this does not show what the home value was
at this time.

So here are my questions!!

1) Do I really need to even claim this on my 2008 taxes??
- The title company did have me sign a 1099-S. So I am guess that is like a W2??
2) How should I claim this do that I do have pay Capital Gain's tax??
3) Since the county can not find any thing to show the value of the home at the
time my father passed, what can I use??
4) Is there a special form number or name, some thing??

I have been working on TaxSlayer to try and see what I might have to pay. But
none of the forms seem correct. I did send them an email they would not help be
because it's a tax question not a program question!!

Thanks for helping me!!

This is definitely a question for Clydewolf. Keep an eye out for him and hopefully he will be along shortly.

OK so I am at a very big lose as to where to turn for help!! Long story but here
I go!!

My father passed away May of 1999. In his will he left my stepmother "life
estate" to the home which was owned free and clear. After the even of her
passing the home was to be sold and divided between my two sisters and myself.

You want the value of the home at the time of your father's death. This is the basis for you and your siblings. A realestate appraiser could help to determine this value.
If there is a property tax bill somewhere, that would show the assessment value the local assessor had on the home.


In March of 2007 my one sister called me to say our stepmother was moving out of
the home and was in the process of deeding it back to us (free and clear). Which
was done and the home was placed for sale by owner from March 2007 to Nov 2007,
then the home was placed with a realtor until it was sold July 2008. One more
thing the property is located in WV and I live in MI, not sure that will some
who make a difference.

I was told by the attorney that worked on the transaction I should not have to
pay taxes because of selling the property because the home value was more when
my father passed away. I was told to contact the county and get a copy of the
"Appraisal / Accounting of property" (it's some thing that was files to show
what the property value was at).

I have called / emailed the county a number of times and they are not able to
find any thing at all. They were able to find a copy of the will and "second &
final accounting" for the estate. But this does not show what the home value was
at this time.

So here are my questions!!

1) Do I really need to even claim this on my 2008 taxes??
- The title company did have me sign a 1099-S. So I am guess that is like a W2??

The 1099-S will go to the IRS. This shows the home was sold for $XX,XXX.
You need to determine your profit/loss on the sale. That is the difference between the sale price less commissions and your basis.

2) How should I claim this do that I do have pay Capital Gain's tax??

The sale is reported on Schedule D, long term section. If you have a gain you will need to pay capital gains taxes. If you have a loss, you can claim the loss. You can claim the loss first against your long term capital gains, then against your short term capital gains, and then you can claim up to $3,000 loss on 1040 line 13 against other income. If there is additional loss, you can carry the loss forward to future years to be used in the manner described.

If you have a gain, the gain will be taxed at a maximum of 15%.


3) Since the county can not find any thing to show the value of the home at the time my father passed, what can I use??

Do you have the county/city assessor's market value for the home? Use that if you can not come up with any other number. Or as I suggested earlier in this post, hire a realestate appraisor to develop the value in 1999.

4) Is there a special form number or name, some thing??

1040 Schedule D, will do what you need.
For the date acquired, write "INHEIRITED".


I have been working on TaxSlayer to try and see what I might have to pay. But
none of the forms seem correct. I did send them an email they would not help be
because it's a tax question not a program question!!

Thanks for helping me!!

I am not familiar with Tax Slayer, but I would think it could handle the job.

It sounds like you are going to claim the profit/loss on your tax return, when it should be shared with your siblings.

This may be a good time to go sit with a tax professional to work through your tax issues.