I have an aunt that died about a year ago and left me a home in her will. It was sold recently.?

Question

Will I owe any federal taxes on the proceeds? Approximately $200,000. I also inherited about $50,000 that was in a savings account. Not sure of my tax burden if any.

Answer 1

If she left you the house in her will, you receive the house with a basis to you of its fair market value on the date of death. For income taxes, the proceeds are not the issue but the resulting gain or loss. Gross selling price less the house's basis to you (its FMV on the date of death) is the issue not the net proceeds after commissions etc.

The saving account is not subject to income taxes but its future interest income will be.

If you are not the executor of the estate, do not worry about estate taxes etc. If you are then you do need to see a tax attorney.

Look in the attached publication and do word searches for estate and inheritance etc.

Answer 2

You should contact a CPA for accurate answers, However I believe there is a a minimum inheritance which is tax free, I believe that amount to be $700,000. You may owe capitol gains taxes on the profits from the sale of the house. See a CPA.

Answer 3

You don't have to pay any tax on the inheritance, since the tax was paid by her estate. However, since you inherited a house and subsequently sold the house, you will have to pay taxes on the proceeds.

Answer 4

You'll have to pay taxes on the appreciation on the house from her date of death. The estate would pay any taxes due up to that time.

Answer 5

You will probably have to go to a lawyer to probate her will. It won't cost you anything to the IRS, only to the lawyer. On the house you owe the IRS nothing. Individuals have a $250,000 allowance on home sales. You will get a 1099 from the IRS. That means the house sale was reportted, but not taxable.