Posted by John K. Haslach, CPA, MST on April 08, 2006 at 04:45:42:
When someone dies, their basis in real estate is generally adjusted to the fair market value at date of death.
Help with Tax Qeustion - Posted by Bob
Posted by Bob on April 07, 2006 at 15:37:23:
My grandfateher passed away in 1994, and my mom inherited his house. In 1996 the house was deeded to me. The house was sold in late 2004. I am a little confused as to what are the tax consequences from this sale. I have been told that I have to pay capital gains tax on the sale by one accountant and another told me that since I lived in the house from 2002 thru 2004 that there is no capital gains. If anyone can shed some light on my situation, It would be a great help.
Thank You
Re: Help with Tax Qeustion - Posted by John K Haslach, CPA, MST
Posted by John K Haslach, CPA, MST on April 07, 2006 at 15:44:16:
If you lived in the house for at least 2 years as your principal residence and are single, the first $250,000 of gain is tax free. She may have gotten a step up in basis when she inherited it and it sounds like you will have her basis. You should sit down with all a qualified tax advisor and go over all the details.
Re: Help with Tax Qeustion - Posted by Bob
Posted by Bob on April 07, 2006 at 15:58:49:
Thank You, Can you elaborate a little on what a step up in basis means. I have a meeting with a tax advisor tommorow. Again, thank you