MAJOR HEEELLLLP! inherited house-did I screw up?

[cynthie]

What is the name of your state? Georgia
Oy. My mother died in Dec. 2001. Her townhouse sold in April 2002 for $110,000. I thought I wouldn't owe taxes on it since (a) she'd lived in it for 5 of the last 5 years and (b) my total inheritance, including the townhouse, was under $250,000. Also, my brother & I split the $ from the sale of the townhouse.

Now the IRS says I owe around $80,000 because I didn't file for that year (no income, I lived off the sale)--I only have until Oct. 26 to straighten this out--what should I do???

THANKYOU!

[cynthie]

I forgot to mention that the townhouse (and her residency) was in Illinois.

[anteater]

Yes, you screwed up somewhere along the line.

Originally Posted by cynthie

What is the name of your state? Georgia
Oy. My mother died in Dec. 2001. Her townhouse sold in April 2002 for $110,000.

Who actually owned the townhouse when it was sold -- your mother's estate, you, you and your brother?

I thought I wouldn't owe taxes on it since (a) she'd lived in it for 5 of the last 5 years and (b) my total inheritance, including the townhouse, was under $250,000. Also, my brother & I split the $ from the sale of the townhouse.

All pretty much irrelevant.

Now the IRS says I owe around $80,000 because I didn't file for that year (no income, I lived off the sale)--I only have until Oct. 26 to straighten this out--what should I do???

Get thee to an Enrolled Agent pronto!