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Posted: 8/8/2014 3:58:17 PM EDT
[#1]
I'm no expert but I think you will have to pay capital gains tax from the prophets, but I believe buying a house in that same tax year that cost more than the one you sold gets you out of some or all the taxes. The part about it being inheritance makes me unsure. Call a tax accountant should be an easy question.
snowman357 |
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Posted: 8/8/2014 5:11:42 PM EDT
[#2]
I had a similar issue a couple years back, I THINK (you need a CPA because I'm not one) that you have to pay capital gains from how much the property has increase in value from when you inherited it. So if it was declared as 120k at the time of death/probate and its sold for 130 k you owe capital gains on 10k gain. if it had no gain in value you owe nothing. Thats what I THINK. But you really need a CPA.
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Posted: 8/8/2014 5:28:31 PM EDT
[#3]
Well that was my next question. I didnt know who to go to and it sounds like a CPA is where I need to be, I read something that was mentioning the value when she died as opposed to now. If they simply go off of the assessed value I will probably be fine as it is in rough shape.
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Posted: 8/9/2014 2:16:37 AM EDT
[#4]
Quote HistoryQuoted:
I had a similar issue a couple years back, I THINK (you need a CPA because I'm not one) that you have to pay capital gains from how much the property has increase in value from when you inherited it. So if it was declared as 120k at the time of death/probate and its sold for 130 k you owe capital gains on 10k gain. if it had no gain in value you owe nothing. Thats what I THINK. But you really need a CPA. I am not a CPA but this is correct. Your basis in the house is the value of it at the time you inherited it. You will pay taxes on any amount about your basis when you sell it. |
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Posted: 8/9/2014 3:42:35 PM EDT
[#5]
Unless you used it as a primary residency for 2 years and some other restrictions, you will have to pay capital gains taxes.
Capital Gains For Home Sales |
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Posted: 8/9/2014 8:57:22 PM EDT
[#6]
Quote HistoryQuoted:
Unless you used it as a primary residency for 2 years and some other restrictions, you will have to pay capital gains taxes. Capital Gains For Home Sales Yeah that will suck. |
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Posted: 8/20/2014 11:59:02 PM EDT
[#7]
Quote HistoryQuoted:
Yeah that will suck. Quote HistoryQuoted:
Quoted:
Unless you used it as a primary residency for 2 years and some other restrictions, you will have to pay capital gains taxes. Capital Gains For Home Sales Yeah that will suck. That being said, if you've used it as your primary residence and have owned it for ten years, and you sell for less than $500k (or is in less than $500k capital gains?) it's all exempt... |
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Posted: 8/21/2014 12:06:59 AM EDT
[#8]
I did use it as my primary residence but not in the last 5 years which is the time frame I keep seeing. Hope to talk to a CPA this weekend or next. Have a solid offer on the house so hopefully it will be sold soon.
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Posted: 8/21/2014 12:30:50 AM EDT
[#9]
You may want to ask the CPA if a 1031 exchange will help you since you are looking to buy another home.
I don't know a lot about what qualifies so that's definitely a question for a pro. |
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Posted: 8/21/2014 12:41:58 AM EDT
[#10]
Quote HistoryQuoted:
You may want to ask the CPA if a 1031 exchange will help you since you are looking to buy another home. I don't know a lot about what qualifies so that's definitely a question for a pro. 1031 applies to investment properties so I couldn't live in it right away. |
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Posted: 8/22/2014 9:39:47 PM EDT
[#11]
6-8 years ago was the top of the property bubble... you may likely be selling at a paper loss.
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Posted: 8/23/2014 1:07:16 AM EDT
[#12]
Quote HistoryQuoted:
6-8 years ago was the top of the property bubble... you may likely be selling at a paper loss. One can hope 
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Posted: 8/26/2014 9:09:34 AM EDT
[#13]
Quote HistoryQuoted: I'm no expert but I think you will have to pay capital gains tax from the prophets, but I believe buying a house in that same tax year that cost more than the one you sold gets you out of some or all the taxes. The part about it being inheritance makes me unsure. Call a tax accountant should be an easy question. snowman357 |
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Posted: 9/14/2014 2:09:21 PM EDT
[#14]
Quote HistoryQuoted:
I am not a CPA but this is correct. Your basis in the house is the value of it at the time you inherited it. You will pay taxes on any amount about your basis when you sell it. Quote HistoryQuoted:
Quoted:
I had a similar issue a couple years back, I THINK (you need a CPA because I'm not one) that you have to pay capital gains from how much the property has increase in value from when you inherited it. So if it was declared as 120k at the time of death/probate and its sold for 130 k you owe capital gains on 10k gain. if it had no gain in value you owe nothing. Thats what I THINK. But you really need a CPA. I am not a CPA but this is correct. Your basis in the house is the value of it at the time you inherited it. You will pay taxes on any amount about your basis when you sell it. You can have a real-estate person put together a "Time Of Death" appraisal on the home estimating the value at the time you inherited it. The inference will be considered capitol gains. |
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Posted: 9/16/2014 2:21:00 PM EDT
[#15]
Quote HistoryQuoted:
That being said, if you've used it as your primary residence and have owned it for ten years, and you sell for less than $500k (or is in less than $500k capital gains?) it's all exempt... Quote HistoryQuoted:
Quoted:
Quoted:
Unless you used it as a primary residency for 2 years and some other restrictions, you will have to pay capital gains taxes. Capital Gains For Home Sales Yeah that will suck. That being said, if you've used it as your primary residence and have owned it for ten years, and you sell for less than $500k (or is in less than $500k capital gains?) it's all exempt... actually, the rule is: you must have lived in the house for 2 of the last 5 years to make the first $250k exempt, it's $500k if married filing jointly. |
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