Did you receive property by way of a gift or through inheritance and you are now looking to sell that piece of property? Are you unsure of what taxes will be assessed or if you need to report anything to the IRS? Do not worry, these are questions that many people have and they are questions for which many do not receive an answer. The simple answer is yes, a report must be made to the IRS. However, it is much more complicated than that.
There are a number of things that you must know about the property before you report and sell. If it was gifted to you, what was the amount of investment put into the property by the person who made the gift to you, how much was the property worth (fair market value) at the time the gift was made, and what gift taxes, if any, were paid on the property. These figures can be difficult to ascertain and keep straight and if the property was inherited, there are different questions that must be asked.
If the property was inherited, then the investment on the property will be deemed to be the fair market value at the date the owner died. However, this rule applies only to property belonging to people that died before or after 2010, different rules will apply to those who died in 2010.
If you have come into possession of property and are asking yourself these questions, it is most likely because you have lost someone near and dear to you. Do not worry yourself and stress yourself out thinking about these questions and rules. Call us at Boyer Law Firm, we will get the information we need from you so that we can worry about the questions you have. It is hard enough to deal with the loss of a loved one, let us deal with the rest.