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March 31, 2024
Question

inherited property sale

  • March 31, 2024
  • 1 reply
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me and my 3 siblings were awarded our fathers home when he died in 1994. Courts awarded us the house in 1995. our step mother was allowed to live in the house until death. She died in 2022. only to leave us in a battle for our house because she was some how able to get mortgages against our home. We finished with the mortgage battle in June of 2023. We sold the house in Oct, 2023 for $190,000. Since the amounts would be divided by 4. each of us would have a capital gain of $35,796. Do we have to pay the taxes on this amount? Next question is we all live in Oklahoma and the property was in Florida. Will we have to pay State Taxes on this?

    1 reply

    March 31, 2024

    Yes, you will each report the sale of the inherited house as part of your personal returns.  Capital gains tax will apply to the sale.  

     

    You would not be subject to Oklahoma state tax on the income from the sale of real property in another state.  

     

    See the following TurboTax help article for guidance to enter the sale of the inherited home:

     

    Where do I enter the sale of a second home, an inherited home, or land on my 2023 taxes?
     

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