asked

My wife inherited a 1/10th share of her father's home. The home was sold to settle the estate, and her share was under $6000. How do we claim this on our income taxes, and is this money taxable? Additionally, at the time of her father's death, the property had an assessed value of $120,000. The house was left unmaintained, and a new septic system had to be installed, which came out of the sale price. The house was finally sold for $80,000, resulting in a loss of $40,000 divided into the 10 shares. How do I report this with no gain and a shared loss of $40,000?

June 27th, 2023

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