inheritance tax on a 200k home?

Question

my uncle passed and left me a home I was told could sell for $200,000. The home is in Pittsburgh Pa. Could anyone tell me the approximate tax I have to pay? Thanks for any ideas

Answer 1

Depending on your uncle's total estate there may or may not be any inheritance tax to be paid either federal and/or state. But that would be paid by your uncle's estate, not by you. The only thing that you would have to worry about, is what the house was valued at for estate purposes. Since you inherited the house from your uncle, your cost basis in the house is considered to be the value of the house on the date of his death, or 6 months later if the estate used alternative valuation. If the value of the house for the estate was $200,000 then you have no gain as your cost and selling price would be the same, if the value was less than $200,000 then you would have gain, if the value was more than $200,000 then you would have loss. You would also have to take the selling expenses into account when figuring out whether you have a gain or not. I have included a link that will help with capital gains rates. Also, because you inherited the house, that makes any gain from selling the house automatically be long-term capital gains.

Answer 2

If you inherited a home from an estate of an uncle then there should be no taxes as the probate takes care of any inheritance taxes. You need to carefully document the date you received the home and the dollar value of said home. If it was appraised at 200 K then that is your basis. If you sell it for 210 K then you have 10 K in capital gain; if you sell it for 190 K then you have a 10 K capital loss on your income tax. If you hold it for a year and a day then any gain would be taxed as long term; which is a reduced amount.

Answer 3

You're likely to have a loss for tax purposes. You receive a step-up in basis on the home as it was received through a decedent's estate. The value for federal estate tax purposes is your new basis. If the value for federal estate tax purposes was $200K and you net $200K on the sale then you have no taxable income. Usually you have cost to sell the home. Things like attorneys fees, title work, realtors, etc. These costs will be deducted and you will show a loss even though you're getting money in. If a Form 706 estate tax return was filed then that will be your new tax basis. If no 706 was filed then you want to get an appraisal as soon as possible to establish the date of death value. Make sure a competent attorney assists you with the entire transaction.

Answer 4

You probably won't incur any federal tax, but you could have to pay PA Inheritance Tax. Here's a link to an article from the Pittsburgh Tribune Review.
http://www.pittsburghlive.com/x/pittsburghtrib/s_62734.html
Here's the meat of the article:
"The inheritance tax statute 72 P.S. 9116 specifies that the tax rate on a surviving spouse is 0 percent, 4.5 percent on a lineal descendant, (unless the lineal descendent is less than 21 years old in which case it is 0 percent), 12 percent on siblings and 15 percent on "collateral heirs.”

And a link to the PA revenue web site (see menu on the left):
http://www.revenue.state.pa.us/revenue/cwp/view.asp?a=3&q=205803&revenueNav=|691|

Answer 5

$0. Unless the value of the entire estate is over $1m, there is no inheritance tax.

Answer 6

You won't have to pay any inheritance tax,, $zero.

if you sell it next month for 200K there will be no tax.