reply to questions re: sale of land and IRA
Hello again,
Thank you for your first reply. In answer to your questions— My husband was one of six siblings that sold 4 vacant lots that were inherited by their mother who passed away in 1996. His sister was the executrix; she paid all taxes before the land was sold January, 2008. They split monies 6 ways. My husband’s share was $30,189. He passed away in February, 2008 of kidney cancer, Stage IV.
He had to retire from his job in May of 2007. His first check under social security retirement started in July, 2007. In December, 2007, he received his first check under social security disability. I turned 60 in July, 2008, and in August started receiving survivor’s benefits of $970 monthly. Is this information enough to give you a complete answer to my questions regarding taxes that I will have to pay for the inheritance of sold lots?
Permalink Submitted by Alan Spross on Sun, 2008-12-14 06:09
Not completely. But if his share of the sale was 30,189, the actual gain on that was far less. I think you meant he inherited the lots from his mother and the tax basis for them would be the value upon her death in 1996.
You would file jointly with your deceased husband in 2008, the last year. He only had one month of SS income and you had 5 months. If this is the only income you both had in 2008, your capital gains tax on the lot sale would be -0- because the lots were held long term and on your joint return you would not be above the 15% bracket. You did not mention any pension income, interest or other investment income. Plus no state income tax in TX.
And there was no earned income so you cannot make any IRA contribution.