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.
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