What are the tax implications of the proceeds from a deceased father’s home that are split evenly by three sons?

by Joseph A. Pancerella, CPA | Aug 10, 2018
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My father-in-law passed away, and his sons are in the process of preparing his house to put on the market. The proceeds from the house will be split evenly three ways. What is the tax liability on our portion?

It depends. There really should be no tax liability, but that assumes that an inheritance tax return is being prepared and will step up the basis. In any event, if done properly, there should be no tax liability.

I recommend consultation with a CPA so you can provide more details and get a more complete answer.

For more resources, check out PICPA’s Money & Life Tips, Ask a CPA, or CPA Locator.

Answered by: Joseph A. Pancerella, CPA, is managing director of Pancerella & Associates LLC in Reading, Pa.

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