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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.

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Originally Posted by dprestage

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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?

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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!