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my wife and siblings sold a inherited property in texas we did not receive a 1099-s at the time. how do we report the proceeds
AI accountant’s answer:

Even if you didn't receive a Form 1099-S, you're still required to report the sale of the inherited property on your tax return. You'll report this on Form 8949, Sales and Other Dispositions of Capital Assets, and Schedule D, Capital Gains and Losses.

Here's a simplified breakdown of what you'll need to do:

1. **Form 8949**: You'll need to provide details about the property, including the date you inherited it, the date you sold it, the sales proceeds, and the property's cost basis. For inherited property, the cost basis is usually the fair market value of the property on the date of the decedent's death.

2. **Schedule D**: This is where you'll summarize your capital gains and losses, including the sale of the inherited property. The information from Form 8949 will flow into Schedule D.

Remember, if you shared the proceeds with your wife and siblings, you only need to report your portion of the proceeds and cost basis.

Also, keep in mind that inherited property is generally treated as long-term capital property, regardless of how long you actually owned it. This could qualify you for a lower tax rate on any gain from the sale.

As always, make sure to keep all records related to the property and its sale in case the IRS has any questions.

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