Capital gains rate on sale of inherited home

[Gill]

+1. Taking a $200K loss will fail IRS audit if they decide to audit.

The acquisition date is date of death so it will be highlighted by the fact the property was only held a few months for a substantial loss, particularly in a period of generally rising real estate prices.
Gill

 

[hotwired]

Well this was 2007 so hopefully all is well. I can't remember dates exactly but I'm pretty sure the time lapse between the broker opinion and the acceptance of the sales offer was a good solid year or more. Our accountant at the time was very popular in our city, one of the big guns so to speak so I'm sure he covered our bases. My details are a little fuzzy after All these Years anyway. But that's the gist of it.

 

[Gill]

Well this was 2007 so hopefully all is well. I can't remember dates exactly but I'm pretty sure the time lapse between the broker opinion and the acceptance of the sales offer was a good solid year or more. Our accountant at the time was very popular in our city, one of the big guns so to speak so I'm sure he covered our bases. My details are a little fuzzy after All these Years anyway. But that's the gist of it.

Well obviously it worked out for you. Many things slip by the IRS when there is no audit. If it was a year or more you were probably on solid ground. That certainly wouldn’t fly in the more typical sale a few months after death.
Gill