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Tax on sale of inherited house
My mother died last year and she left me her house which was under a reverse
Mortgage. I plan to sell the house, pay off the reverse mortgage and keep the remaining Profit. What percentage capital gains would be applied to the profit from the house Sale? |
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1. Your cost basis of the house is the fair market value of the house on the date your mother died. So you may or may not have a profit. If you have a loss, the loss is not deductible.
2. If your mother owned the house and lived in it for 2 years in last five years, you are eligible to exclude gain of up to $250,00. In this case the cost basis is your mother's cost basis plus cost of improvements. Your U.S. Tax Return: Profit From the Sale of Your Home |
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