I Inherited a home from my grandmother who passed away in Jan 2011. It was recently appraised at 145,000. We are selling it for 90,000. Ive read there is no taxes for property inherited that is less then a million? Once sold do I have to pay taxes? I live in Georgia.

First the tax appraisal amount has almost nothing to do with current actual values, have you had a actual real estate appraisal done, where they compare it to other similar properties that are actually selling.

I have had to go get my tax appraisals challenged on almost every property, some cut as much as 1/2 of their values ( to save money on taxes)

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Originally Posted by Karess

I Inherited a home from my grandmother who passed away in Jan 2011. It was recently appraised at 145,000. We are selling it for 90,000. Ive read there is no taxes for property inherited that is less then a million? once sold do I have to pay taxes? I live in Georgia.

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1. Find out the fair market value of the house on the date of inheritance that is in Jan 2011. This is your cost basis. If $90,000 is more than your cost basis, you have a long term capital gain, which you may have to report on your tax return. If you do not have long term capital gain, you do not report it on your tax return.

2. If your grandmother lived in the house for two years in last 5 years, you can exclude gain of up to $250,000, and you do not need to report the sale.