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]

ps TO ABOVE

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

 

[anteater]

Yes, you screwed up somewhere along the line.

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!