Selling Inheritance at a Loss
2010-11-16 by
Today TaxMama hears from Liz in the TaxQuips Forum with this interesting situation. “My father’s cousin passed away and I inherited part of his home. The executrix of the estate said that since the home sold for less than it was appraised for on the date of his death, we each may be able to take a capital loss on our tax returns. Is this true and how would I do that?”
Dear Liz,
Generally, on the sale of a personal residence, there is no deductible loss. However, since this is inherited, and it wasn’t your residence, that just might be correct.
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