Quick question in regards to selling a home...

**alotofgooddeals** · 01-13-2012, 04:45 PM

This home was my dads but was split between all three of us kids... we each received a 1099s for 23,333. I walked away with 22, 323 after real estate agent received her cut. I have to wait to file my taxes as their is a new form etc that will not be available until the 17th....will i have to pay taxes on the whole 23,333 and how much can i expect to pay....will this be added to my income or will it go into a different category etc...I receive extra tax credit for two children and earned income credit for these two children and wonder how much that is going to affect my return.....anyone have any clue.....thanks so much for your help...

**Contrary Housewife** · 01-13-2012, 05:00 PM

You will pay taxes on the amount shown on the 1099. It counts as income. You should be able to look up last years state and federal income tax charts and get an estimate of what this year will cost, based on what you think your total income is going to be.

**alotofgooddeals** · 01-13-2012, 05:06 PM

thanks so much for helping me.....i so appreciate it...i am clueless when it comes to things like that....

**sunflowers*8890** · 01-14-2012, 12:14 AM

Is this an inheritance? You pay taxes on that?

*I know nothing about taxes or inheritance.... just curious.

**alotofgooddeals** · 01-14-2012, 07:31 AM

my dad in 2002 put all three of us kids names on the title of the house almost like we were co-owners....his lawyer advised him to do so...just in case he got sick later in life and so the state couldnt take it to help pay medical bills and such....thank goodness he did because in January of 2008 he became very ill and passed away in March of 2008...my daddy was the smartest man i ever knew...so it was an inheritance but because all three of our names were on the title it will not be counted as so...

**Greebo** · 01-16-2012, 08:46 AM

Originally Posted by alotofgooddeals

my dad in 2002 put all three of us kids names on the title of the house almost like we were co-owners....his lawyer advised him to do so...just in case he got sick later in life and so the state couldnt take it to help pay medical bills and such....thank goodness he did because in January of 2008 he became very ill and passed away in March of 2008...my daddy was the smartest man i ever knew...so it was an inheritance but because all three of our names were on the title it will not be counted as so...

His putting you on the title means you pay taxes on the gain since he bought it.

That's the downside to his strategy. If it had been inheritance, you would not have had taxes on it.

**mombottoo** · 01-16-2012, 08:59 AM

Not that it matters for this 1099, but what was happening with the house between the time your dad passed in 2008 and when your siblings and you sold it?

The sale will count as income and if you don't generally use an accountant to file your taxes, you might want to consider it this year. When my mil passed we had to pay taxes on "some" of the money we received. She had investments and the portion that was taxable to us was any gains made from the date she died until the accounts were closed.

**alotofgooddeals** · 01-16-2012, 09:25 AM

is the base price will be what it was worth when he put us on the title in 2002....the sale price will be deducted from the base price...in 2002 it was worth a whole lot more than we got for it in 2011.....so i am thinking there was no gain...i may be wrong and if someone out there is very smart in this area i would so appreciate any answers you can provide.....i was counting on my income tax return to dig me out of a hole on my home that i live in and not so sure that is going to happen so i may be looking at foreclosure somewhere in the near future...unless i can get myself together and figure out something else...working on that today....life goes on and we will get through it whatever way the ball bounces.....

**Natalia** · 01-16-2012, 10:27 AM

If you just got the money, can't you use some of the 22,000$ to bring you out of foreclosure on your current home?

Sorry if i'm missing something and really sorry you're going through this. The govt cant wait to grab their share on stuff that shouldnt even be taxable.

**alotofgooddeals** · 01-16-2012, 11:33 AM

when we received the 22,000 we caught the payments up....we are now behind...this was in June of 2011....i work an academic school year position which means...I dont get paid for vacations and dont get paid for the summer...ugh! So in reality we are living in a home that we cannot afford...dh cannot work because of back issues...he has good days and bad days...we are in the process of trying to file for disability but not sure how that is going to go...on his good days he does woodworking....this month will be a good month as he has gotten several orders that he is now working on...however i do not believe in time....we have made poor choices and that is why i say life goes on and the cards will fall where they must and we will deal with that....i can handle it...the thing i cant handle is dh stressing and it affecting his health...I cannot stand to see anyone in pain....period! That causes me major stress! Again we have made poor choices and their are consequences for our actions...we will surivive with whatever happens...

**Natalia** · 01-16-2012, 11:57 AM

I am so sorry. I am on CPP-Disability in Canada.. And although i was one of the lucky ones, they rarely approve you on the first go. You have to appeal. It takes months. He should get a specialist fill out the forms because they have more clout than just a GP. The definition is "severe and prolonged". Invisible illnesses are harder but if he has concrete issues with his back ie not just soft tissue damage, it can be easier to prove with tests thus easier to win your case.

In the meantime maybe you could get a border or tenant or exchange student to rent a room to offset some funds?

**alotofgooddeals** · 01-16-2012, 02:39 PM

i have contacted someone who does this type of thing and they said that we would take what the house was worth in 2002 when we were placed on the title and take the selling price of what it went for in 2011 and if there was a gain....we would pay taxes on the gain...if there was no gain and actually a shortfall then there is no gain thus no taxes to pay...the house was worth a whole lot more in 2002 then in 2011 when we sold it so we should be all set....will file tomorrow once the form gets inputted into the hrblock online website and go from there...i can tell you this whole experience will make me stronger....if we get back what they are telling me...I will pay the past due balance plus another 2,000 put away for the next 4 months worth of payments and still continue to make the payments and try to make a little more....I think my goal is to find a way to pay this off as fast as i can so i dont go through this again and if not and it goes not the way i want it...I will save every freakin penny imaginable.... rent for a while and then save and pay cash for something that needs to be fixed up....I refuse to be held hostage anylonger even though this whole situation is my fault and i can't blame anyone else except myself...

**mombottoo** · 01-16-2012, 03:20 PM

(((HUGS))) In our area rent costs way more per month than buying. My son & his wife were paying $950 a month...in rent!!! Note, I did say were

.

They've sinced moved to NC where they are still paying $750 a month for rent. Isn't there any way for you to get your note rewrote? Perhaps, if your house is worth less than your loan you would qualify for one of the many programs out there that are available to people in your situation.

**Greebo** · 01-16-2012, 03:28 PM

Renting vs. buying in the same neighborhood is more expensive until you have your heater explode or water heater break down, etc.

Month to month buying is cheaper. Life long, well - my $10,000 HVAC project is something a tenant would never have to face.