The Tax Professionals Blog — inherited property

Loss on the Sale of an Inherited Home

Posted by Lee Reams Sr. on

A beneficiary who inherits the residence of a decedent generally acquires it with a basis equal to the fair market value at the decedent’s date of death, and since it is inherited property, it is treated as held for long-term. Generally, a beneficiary will sell the residence through a broker and will have substantial sales costs. A frequent question is whether or not a loss is allowed on the sale. The answer to that question depends upon the beneficiary’s use of the property after inheriting it.

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