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About Bruce W. Tyler, EA
Expertise
I can answer anything with regard to the following: Preparation/Tax Law regarding Individual Income Tax (IRS and California), Audit Representation/IRS Procedures of personal and corporate income tax including appeals, IRS Collection procedures for individuals, partnerships and corporations, offers-in-compromise, payment plans, penalty abatement etc.

Experience
21 years in tax preparation and representation

Organizations
National Association of Enrolled Agents

Education/Credentials
4 years of accounting at Woodbury University/UCLA Extension

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Tax Law (Questions About Taxes) - Taxes owed on estate disbursment

Expert: Bruce W. Tyler, EA - 11/3/2009

Question
Hello, we are selling my fathers home. After we pay off what we owe on the reverse mortgage he had, what will be left for the three siblings to split three ways evenly, is under $100K. it's like $90K
My question is: do each of us have to pay taxes on the 1\3 we each get? I live in Minnesota, and the other two siblings live in Arizona. Myself personally need to pay off some debt as soon as i get the money, but if I need to keep money aside to pay taxes on it I will, but better to know now rather than after I have already spent the money. can you help, or at least point me somewhere that can?

Answer
Alan,

Is the home still in the name of the estate? If so, the estate may have to pay tax on the sale of the home depending on several factors.

If the home has transferred title to the 3 of you, the only tax that would be owed would be if the home sold for more than it was worth on your Dads' date of death, which in these times seems unlikely.

Contact an EA in your area - check for one at www.naea.org that specializes in estate tax.

Bruce Tyler, EA
Lancaster, CA.
661-724-1041

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