My brothers and I inherited my parents condo. We are closing on the sale of it a week from Friday. Does anyone know what the tax liabilities are?
2006-07-27 13:37:44 · 6 answers · asked by Mark P 1 in Business & Finance ➔ Taxes ➔ United States
For starters, you never said how long you have owned the property. Also, you never said whether you are currently living in the property.
If you have only owned it a short time regardless of where you live, there won't be much difference because your "basis" in the property was adjusted to fair market value at the time you received the inherited property. If you have owned the property for more than two years, and this has been your primary residence for 2 of the last 5 years, then you have up to $250,000 each (assuming you file single) of gain that can be excluded under Sec 121. If you have owned it more than 1 year and this is not your primary residence, then you will capital gains tax (15%) but this depends on which tax bracket you are in.
2006-07-27 15:37:41 · answer #1 · answered by bowens 2 · 1⤊ 0⤋
The good news is that there probably won't be too much tax due. When you inherit property, you inherit it at the FMV at the time of death, or six months after the date of death (depending on how the estate elected to handle that). So, if the estate had the condo appraised for $200,000 eight months ago, and you sell it next week for $250,000, you have a $50,000 long term capital gain on the property. That's not so bad, right? Just as a note, though, did you have someone professionally appraise the property? That goes a long way if the IRS wants to question the transaction.
2006-07-27 20:55:51 · answer #2 · answered by SuzeY 5 · 0⤊ 0⤋
not likely but there are a lot of variables (i.e. was the property in a trust, etc).
Generally, it steps-up to the fair market value which means there should be no or very little gain and taxes.
2006-07-27 20:41:31 · answer #3 · answered by Anonymous · 0⤊ 0⤋
It depends to the extent that the Death Tax was imposed on the rpoperty before it was transferred to your name. Now, if we just got rid of the democrats, there would be no such thing and then no, you would not.
2006-07-27 20:42:42 · answer #4 · answered by the1andonlyjac 1 · 0⤊ 0⤋
I really don't know of anything you don't have to pay tax on.
2006-07-27 20:40:39 · answer #5 · answered by WC 7 · 0⤊ 0⤋
i have no idea
2006-07-27 20:49:04 · answer #6 · answered by Anonymous · 0⤊ 0⤋