View Full Version : Taxes on Sale of Property Inherited
awjhwpoint
Feb 18, 2009, 04:37 PM
My sister and I lost our Mom in Dec and she left us several properties. We plan to sell her house this spring. We are wondering about the tax implications here. Will we have to pay taxes on all that we inherited when we sell it. Thanks for your help.
ebaines
Feb 18, 2009, 08:48 PM
The only tax liability you will have to pay as an heir is capital gains taxes on any gain in the value of the property between the time your Mom died (the date you inherited the property) and the date you sell the property. There is no federal inheritance tax in the US, so no worries there. If your mother's estate owes estate taxes, the executor of the estate is responsible for figuring that out and paying those taxes out of the assets of the estate. But again, the heirs do not pay those taxes.
AtlantaTaxExpert
Apr 15, 2009, 01:02 PM
One minor addendum to this issue: IF the executor screws up and does not pay any estate taxes due, the IRS can come to the heirs for the back-due estate taxes.