--------------------------------------------------------------------------------

My mother-in-law passed away last year, leaving an estate of approximately $150,000 (her home). Her will stipulated that her 8 kids share equally in its sale. The attorney is saying that there will be capital gains tax of 15% on the federal end ($22,500) and 10% on the California end ($15,000) will be due. With an estate of this (small) size, I thought there was no estate or inheritance taxes due. What would she (or her kids) be paying this capital gains taxes on?

You are right; no capital gains tax is due.

Your attorney obviously has no tax background.

Get professional tax advice from a CPA or an enrolled agent.

--------------------------------------------------------------------------------

My mother-in-law passed away last year, leaving an estate of approximately $150,000 (her home). Her will stipulated that her 8 kids share equally in its sale. The attorney is saying that there will be capital gains tax of 15% on the federal end ($22,500) and 10% on the California end ($15,000) will be due. With an estate of this (small) size, I thought there was no estate or inheritance taxes due. What would she (or her kids) be paying this capital gains taxes on?
Thank you for your help with this! The eight siblings will be thrilled to hear this news (and I will be a hero for finding this information for them!).

Glad to help!