I Am Going To Inherit A House Left By My Mother. Will I Have To Pay Taxes When I Sell It?

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Estate And Trust 9 months 1 Answer 331 views 0

About Charles Woodson

Estate And Trust, Fiduciary Coach Charles Woodson has been preparing taxes for trusts/estates for many years. He identified a need for families who are at a loss of what to do when they lose a loved one. He recognized the families left behind need guidance on what to do and how to do things correctly. As a result his leading nationally recognized expertise as a Fiduciary Coach helps families by instructing them where to start and guiding the family members through the entire process. His services are valuable to the families left behind. Charles has been teaching tax professionals of all levels in a wide array of tax areas such as correct filing for estates and trusts income tax returns. He is also an editor for tax training materials for The Income Tax School and the author for tax workshops for California Society of Tax Consultants.

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  1. Charles Woodson

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    It’s possible.  Taxes are based on sales that generate a profit (gain).  The gain is the difference between the selling price (net of selling expenses) and the basis of the house.  The basis of a house that is inherited is the value at date of death.  In many cases this value is often about the same as the selling price and therefore there is no gain.  The longer you wait to sell the more likely for gain to increase.  Gain from personal real estate is a capital gain and federal law has a lower tax rate for sales of assets held (owned) for more than a year.  Inherited assets automatically are treated as having been held for more than a year regardless whether sold less than a year from the date of death.

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