When can you sell a house you inherited without paying capital gains?
I inherited a house in August. I want to sell it ASAP, how long after the individual’s death do I have to wait as I don’t want to pay capital gains tax. I have heard that after a death capitol gains goes away.
Tags: capital gains tax, capitol gains
September 12th, 2011 at 9:19 am
Go ahead and sell it ASAP. When you sell it, you’ll pay capital gains tax on the difference between your cost basis (the value when the person died), and the amount you sell it for, less any expenses. If you owe any capital gains tax, it will be because the value of the property went up after the death, not such a bad thing!
September 12th, 2011 at 9:19 am
Ebay.
September 12th, 2011 at 9:19 am
you can’t u have to pay the capital gains
September 12th, 2011 at 9:19 am
IT doesn’t go away. However, the cost basis goes up. So if you sold now, you would take the amount you received, subtract the value of the house when it was inherited, and you have YOUR gain. If you sell close to the time you inherited it, you won’t have much gain, if at all. No taxes then.
September 12th, 2011 at 9:19 am
The house you inherited gets a basis affixed to it on the date of death or in some cases a date 6 months after can be used. So if the house was originally purchased for $50,000 and was worth $300,000 on the date of death, anything you sell it for above $300,000 minus any expenses, would be taxed in the short term. Now if you choose to live there for 2 years, then you could exclude up to $250,000 profit as a single person or $500,000 if married.
You need to check out what the value was on the Date of Death, which would be in the estate tax return if filed.
September 12th, 2011 at 9:19 am
nope–it transfers to u—sorry u have to pay tax on any gains as everyone else
September 12th, 2011 at 9:19 am
no it don’t , you can ask a pro realitor about doing a 10-31 where you sell and have 45 days to reinvest the money and not pay tax, it’s the only way I know of.
September 12th, 2011 at 9:19 am
Contact a CPA quickly. YOu can also do a 1031 Exchange and you would have to re-invest the money into another peice of real estate. Ask your CPA about this…