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    annieruth's Avatar
    annieruth Posts: 2, Reputation: 1
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    #1

    Nov 28, 2007, 06:19 PM
    Capital Gains:
    I am 65. Do I need to pay Capital Gains on a house that I inherited when I sell it?
    annieruth's Avatar
    annieruth Posts: 2, Reputation: 1
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    #2

    Nov 28, 2007, 06:19 PM
    I am 65. Do I need to pay capital gains on a house that I inherited when I sell it?
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #3

    Nov 29, 2007, 11:53 AM
    Depends. When you sell the house if it has been your primary residence for at least 2 of the previous 5 years, then you can exclude up to $250K of any capital gain ($500K if married filing jointly). But if the house has not been your principal residence, or if its gain in value is greater than the exclusion amount, you will owe capital gains taxes. There are a few other exceptions to the 2-out-of-5 residency rule, such as if the sale is mandated by a change in job, or health concerns, or unforseen circumstance such as divorce or natural disaster.
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