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Information Overloader
Join Date: Mar 2003
Location: NW Lower Michigan
Posts: 29,985
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The taxman cometh!
Question for the tax preparers:
The sale of inherited property is automatically a long-term capital asset transaction (long term cap gain/loss). Form 8949 asks for the date acquired and the instructions say to put "INHERITED" in the box. It also asks for the cost basis (which is stepped-up to the date of decedent's death). So what documents does the IRS require to show the asset being sold was actually an inheritence and what documents are needed for an 'explanation' of the basis on form 8949? Do you submit copies of the will, the deed, and an appraisal?
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