Belt Auction

We received a 1099S form after selling my deceased mother's home at auction.?

When does the no estate tax, if the value is under a certain amount, come into the equation. It seems to me like we just added a few thousand dollars to our personal income tax liability. Are there exceptions in the 1099S requirement? Or, did the attorney advising us make a major error?

Public Comments

1. 1099 dollars for a house? fail
2. No Error This is not an estate tax issue. It is an income tax issue. You report it on Schedule D like you would a stock sale. You use the value reported on the 1099S as the sales price. For the basis (cost) you use the Fair Market Value of the home as of the date of your mother's passing. Unless there was a huge increase in value between the sale date and the date of her passing, there will be little or no tax liability. Sorry for your loss by the way.