What are tax consequences of selling my share (1/3 but below mkt) of our parent's home to my brother? The home was in NJ, I live in Colorado. Thanks.
2 Answers from Attorneys
If you are thinking of declaring a capital loss on the sale, you might not be eligible as you are selling to a family member and the sales price seems artificial (below market). If you just want to know if the sale will produce taxable income to you, the answer is no! This is a reply to an Internet question and the response is not intended to be legal advice or as creating an attorney-client relationship.
No reportable gain as you are presumably selling below your cost basis (inheritance value is your basis). You may not be eligible to report a loss, however, as you are selling to a relative and below market value. Differential may even be considered a gift with a possibility of a gift tax. This is a response to an Internet question and the reply is not intended to be legal advice or as creating an attorney-client relationship.