Tax Law (Questions About Taxes)/Gift Warranty Deed


My father passed away this year and left his house to my siblings and me using a gift warranty deed. We are going to sell the house to our nephew, which will also be this year.

Will we have to pay federal income tax on the proceeds? Should be approx 27,000 each. We live in Florida, so there is no state tax.

What actually is this money called if we do have to claim it?


Sorry for your loss

No income tax unless sale to nephew Is more than value of house when dad died

Did dad transfer house  at death or via gift while still alive?

You do have to report the sale at gross sale price to nephew

Your cost basis (and any gain) is either dad's historical price if he gave by gift while alive (yes, likely bad and taxable outcome) Or the date of death value if transferred at death (no gain and good Outcome)

Are you and your siblings providing financing to nephew?

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