Posted by Natalie-VA on March 02, 2005 at 20:06:03:
Talk to a CPA. If you can show that it was your principal residence for the last 2 out of 5 years, then it appears that your gain is tax free. No, you would not have to reinvest your gain.
Capital gains tax on inheritance… - Posted by daniel
Posted by daniel on February 28, 2005 at 15:09:13:
My grandfather passed away 5 years ago, leaving me 12.5% of his estate… The value at his death, was about 300,000 dollars less than it is now, when it sold at 633,000… My cut of this is about 80K, and I am wondering what the law says about capital gains taxes… I believe that I can show that I was a resident of this property for 2 years in the past 5, because I was in the marine corps, and all of my mail went here, and I stayed here every weekend… but I am not sure… Then if I can do that, do I have to leverage that into a different property of equal or greater value than my 12.5%? or is it mine at that point…
Please Help!!! Im totally lost!
Thanks.
Daniel
Re: Capital gains tax on inheritance… - Posted by John K Haslach, CPA, MST
Posted by John K Haslach, CPA, MST on March 03, 2005 at 17:41:34:
If the fair market value was $300,000 at the date of death, that is your basis. If you have lived in it 2 of the past 5 years as your principal residence and you are single, the first $250,000 of gain is tax free. If you are married, the first $500,000 is tax free. There is no rollover of the gain. That changed with the 1997 tax law.