At the end of my road!!

[skilmer80]

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!!What is the name of your state (only U.S. law)?

 

[LdiJ]

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!!What is the name of your state (only U.S. law)?

Yes, you must report it on your 2008 taxes. If you do not, in about a year you are going to get a letter from the IRS asking you to pay capital gains tax on the entire amount.

You have to do/find something to establish the value of the house at the time that your father passed away. An appraisal company (perhaps even the company that appraised the house when it was sold) might be able to assist you. The IRS is going to be reasonable about things as long as there is some solid logic behind the amount you come up with.

You would report the sale on Schedule D. You report your share of the "cost" (your share of the amount that you determine the house was worth when your father died) and your share of the sales price (your share of the proceeds of the sale) and the difference between the two is your capital gain or loss.

You really might want to consider using a tax professional this year.