[pitabo]

Mother passed in June, 2010. House to be sold and split 4 ways.

1. There is no inheritance tax for the 4 siblings?
2. If house is not sold this year, will the estate have to pay estate tax on the sale amount of the house next year?

[tazimorandi]

I believe there is no inheritance tax on estates less than 2 million dollars. This may have been reappealed this last year when Obama came into office. All property is transferred according to the will without any tax consequences. Best to check with a tax advisor to be sure.

[smoothy]

We need to know where this is... every state has their own laws and taxes as well, Beyond what the Federal Government may or may not have so nobody can assume anything is a valid answer anywhere in the usa.

[JudyKayTee]

I believe there is no inheritance tax on estates less than 2 million dollars. This may have been reappealed this last year when Obama came into office. All property is transfered according to the will without any tax consequences. Best to check with a tax advisor to be sure.

It's by State Law (as Smoothy said) - what State?

[ScottGem]

The heirs do not get taxed, the estate is responsible for any taxes owed. However, there is currently no fed tax on estates under $2 mil.

The house does not have to be sold immediately. But the estate will have to pay any taxes due or mortgage until the property is sold. Also, the cost basis of the property is the value of the property as of June 2010. So when the property is sold, capital gains will be based on that cost basis.

Another issue here is the status of this estate. Has the property been transferred to the siblings names or is it still a part of the estate.