2007-05-13 13:43:35 · 5 answers · asked by hellolost 1 in Business & Finance ➔ Taxes ➔ United States
If you have lived in it for 2 of the last 5 years - no tax. Otherwise your basis is the value of the house when you inherited it. You will owe some tax on the difference between the selling price minus cost to sell and your basis.
2007-05-13 13:48:05 · answer #1 · answered by Joe 5 · 1⤊ 2⤋
That depends on a lot of things. You'd owe capital gains tax on the appreciation since you inherited it, unless you lived in it as your main home for two out of the last five years - if you did, you might not owe any federal income tax. If you rented it out at any time since you've owned it, there are additional issues.
States vary in their treatment of home sales for tax purposes, so whether or not you'd pay a state tax depends on where you live.
2007-05-13 20:47:23 · answer #2 · answered by Judy 7 · 5⤊ 0⤋
Everyone is correct, but there is also a State issue. My siblings and I inherited properties years ago in Florida and then in New York. Tax laws were different.
2007-05-13 20:52:15 · answer #3 · answered by Anonymous · 0⤊ 1⤋
If it's not your principle place of residence (no tax if it is) you'll be looking at whatever the tax rate is in your area on the gain you make on the property between the time you inherited it and the time you sold it.
Eg:
Inherit $100
Sell $150
Tax rate 30%
Tax = 50 X .3 = 15
2007-05-13 20:48:58 · answer #4 · answered by Up your Maslow 4 · 0⤊ 5⤋
Talk to an attorney, it could save you from a lot of head aches. I believe you have a certain amount of time to "reinvest" real estate $$$ and avoid a big tax hit.
2007-05-13 20:47:28 · answer #5 · answered by Anonymous · 0⤊ 6⤋