Utilit99 4,099 Posted July 13, 2021 I did about a month or so ago. It's now sold at this point and is under contract and is expected to close in the next couple weeks. Seems it will go through as the buyer sold their place and they have a strong background as far as wealth and are very settled and committed. No contingencies. For taxes, I read that if you inherit a house, that you don't pay taxes on it for the increased value from when it was bought by the owner who I inherited from, in this case my dad, but rather if I were to hold onto it and the home increases in value from the person who died death date, I only pay gains from that date. Does that sound right? I am pretty sure it is but is there any further complication to that? I read this on a real estate page: The bottom line is that if you inherit property and later sell it, you pay capital gains tax based only on the value of the property as of the date of death. 1 Share this post Link to post Share on other sites
wiffleball 4,635 Posted July 13, 2021 Somebody left me season 4 on dvd. Hope the Lorrie is ok is okay I guess. 1 Share this post Link to post Share on other sites
Utilit99 4,099 Posted July 13, 2021 Just now, wiffleball said: Somebody left me season 4 on dvd. Hope the Lorrie is ok is okay I guess. What were your tax implications? Share this post Link to post Share on other sites
IGotWorms 3,309 Posted July 13, 2021 Fock if I know. Seems like maybe the estate would have some separate liability for it too but I could be wrong. You’d have to consult a tax attorney to know for sure or maybe an accountant would do Share this post Link to post Share on other sites
Utilit99 4,099 Posted July 13, 2021 2 minutes ago, IGotWorms said: Fock if I know. Seems like maybe the estate would have some separate liability for it too but I could be wrong. You’d have to consult a tax attorney to know for sure or maybe an accountant would do Yeah, I will do that for sure. I got a bunch of feedback already but I'm out of state and not sure from state to state if it varies. I'll have an accountant to deal with it cause there is no way in hell I trust myself with taxes. Share this post Link to post Share on other sites
JustinCharge 2,397 Posted July 13, 2021 i sleep with your mom every night but i wouldnt call it inheriting the house. 1 Share this post Link to post Share on other sites
Utilit99 4,099 Posted July 13, 2021 17 minutes ago, JustinCharge said: i sleep with your mom every night but i wouldnt call it inheriting the house. So, you sleep in Queen of Heaven cemetery every night? Thanks dude. That's nice. Pretty sure you got nothing else going on anyway but it's a nice gesture. Share this post Link to post Share on other sites
Dizkneelande 839 Posted July 13, 2021 You pay the gain from the time you inherit to the time you sell. Biden is trying to change that and tax you on the full gain. Share this post Link to post Share on other sites
Gladiators 1,904 Posted July 13, 2021 1 hour ago, Dizkneelande said: You pay the gain from the time you inherit to the time you sell. Biden is trying to change that and tax you on the full gain. This is what I recall as well. However, I don't know how the value at the time it's inherited is determined. I assume an appraisal...perhaps that has to be done as part of wrapping up the estate. Share this post Link to post Share on other sites
Alias Detective 1,179 Posted July 13, 2021 @mmmmm...beer I'm sure Beer has a time or 2. 1 Share this post Link to post Share on other sites
Bert 1,087 Posted July 13, 2021 8 hours ago, Utilit99 said: I did about a month or so ago. It's now sold at this point and is under contract and is expected to close in the next couple weeks. Seems it will go through as the buyer sold their place and they have a strong background as far as wealth and are very settled and committed. No contingencies. For taxes, I read that if you inherit a house, that you don't pay taxes on it for the increased value from when it was bought by the owner who I inherited from, in this case my dad, but rather if I were to hold onto it and the home increases in value from the person who died death date, I only pay gains from that date. Does that sound right? I am pretty sure it is but is there any further complication to that? I read this on a real estate page: The bottom line is that if you inherit property and later sell it, you pay capital gains tax based only on the value of the property as of the date of death. The house will be stepped up to fair market value. When the estate distributes the house to you, assuming it was a specific bequeath, it is distributed at that value. Any gain generated between the time of death and the sale would be taxable to you, I believe as capital gains but I am not sure. Share this post Link to post Share on other sites
Cdub100 3,379 Posted July 13, 2021 My mom stole the money I made from working at Mcdonald's to pay her mortgage. Does that count? Share this post Link to post Share on other sites
Alias Detective 1,179 Posted July 13, 2021 9 hours ago, Utilit99 said: I did about a month or so ago. It's now sold at this point and is under contract and is expected to close in the next couple weeks. Seems it will go through as the buyer sold their place and they have a strong background as far as wealth and are very settled and committed. No contingencies. For taxes, I read that if you inherit a house, that you don't pay taxes on it for the increased value from when it was bought by the owner who I inherited from, in this case my dad, but rather if I were to hold onto it and the home increases in value from the person who died death date, I only pay gains from that date. Does that sound right? I am pretty sure it is but is there any further complication to that? I read this on a real estate page: The bottom line is that if you inherit property and later sell it, you pay capital gains tax based only on the value of the property as of the date of death. Called a step up in cost basis. Share this post Link to post Share on other sites
Utilit99 4,099 Posted July 13, 2021 1 hour ago, Gladiators said: This is what I recall as well. However, I don't know how the value at the time it's inherited is determined. I assume an appraisal...perhaps that has to be done as part of wrapping up the estate. Yeah. We put small updates into the place like got rid of some wallpaper and painted it a neutral white, and a small amount of mold in the attic over the garage we got rid of as well as cleaning up the wood floors that were a bit dirty as compared to under the rug. So pretty simple and minor changes. Not sure if that is increasing the value and therefore would be considered capital gains. We put it on the market within weeks after inheriting it, then it sold almost immediately for higher than we expected actually. Share this post Link to post Share on other sites
Bert 1,087 Posted July 13, 2021 51 minutes ago, Utilit99 said: Yeah. We put small updates into the place like got rid of some wallpaper and painted it a neutral white, and a small amount of mold in the attic over the garage we got rid of as well as cleaning up the wood floors that were a bit dirty as compared to under the rug. So pretty simple and minor changes. Not sure if that is increasing the value and therefore would be considered capital gains. We put it on the market within weeks after inheriting it, then it sold almost immediately for higher than we expected actually. Ask the executor, they should have the stepped up bases. I believe every state requires an estate to be probated if there is real-estate involved. Share this post Link to post Share on other sites
Utilit99 4,099 Posted July 13, 2021 1 minute ago, Bert said: Ask the executor, they should have the stepped up bases. I believe every state requires an estate to be probated if there is real-estate involved. Yeah. My sister is the executor, and she is very thorough, but I never thought to ask about that. Thanks. Share this post Link to post Share on other sites
rurbaniak 6 Posted July 13, 2021 Yes, about 3 years ago, sold at around market value, so didn't have any capital gains on it. Share this post Link to post Share on other sites
Utilit99 4,099 Posted July 13, 2021 Just now, rurbaniak said: Yes, about 3 years ago, sold at around market value, so didn't have any capital gains on it. Share this post Link to post Share on other sites
mmmmm...beer 691 Posted July 14, 2021 16 hours ago, Alias Detective said: @mmmmm...beer I'm sure Beer has a time or 2. Share this post Link to post Share on other sites
nobody 2,037 Posted July 14, 2021 No. I don't have white privilege. Share this post Link to post Share on other sites
Alias Detective 1,179 Posted July 14, 2021 5 hours ago, mmmmm...beer said: Share this post Link to post Share on other sites
Mookz 1,287 Posted July 14, 2021 Everything said here has been Also I think you can deduct the expenses that you incurred in getting it ready for sale from the gain. Share this post Link to post Share on other sites