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

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.

The responses are based on the limited information provided by the questioner and apply the laws and regulations at the time of posting. Other options could arise as rules and regulations may change over time, including but not limited to the passage of the Tax Cuts and Jobs Act of 2017. They are intended to provide general information, not specific accounting or tax advice; they are not intended or written to be used and cannot be used for the purpose of avoiding or evading taxes or penalties under the IRS code or regulations. Views expressed do not imply an opinion of the PICPA, its officers, directors, employees, or members.
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