Ask Experts Questions for FREE Help !
Ask
    edrussell's Avatar
    edrussell Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Feb 9, 2010, 01:50 PM
    Cal inheritance tax
    My family has inherited a piece of property in California. What are the tax issues with remodeling or liquidating this property
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
    Expert
    		  
    #2

    Feb 9, 2010, 01:59 PM

    The title of your post is "Cal Inheritance Tax," so I'll assume that your question is specifically about inheritance taxes on property in CA. The good news is that CA does not have an inheritance tax, so you have no worries on that score. As for "liquidating" the property - when you sell if the amount you receive for the sale is greater than your cost basis, you have a capital gain to report on your income taxes. If less, unfortunately you can't take the loss as this is considered personal property (I am assuming the property is not business related). The cost basis is probably equal to the fair market value of the property as of the date of death of the decedant - the executor of the estate should be able to tell you what that was. As for remodeling - I suppose the only concern is getting the proper permits, and you may see your property tax go up (depending on how the town considers remodeling for property tax purposes).
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Medi-Cal SSI recipient gets inheritance [ 1 Answers ]

Hello: We have been getting conflicting information. My roommate is currently receiving Medi-cal and SSI. He is the beneficiary of a trust and is about to receive an inheritance. Getting the money will disqualify him from his benefits. He cannot afford to loose the Medi-cal. Can his...

Inheritance tax [ 2 Answers ]

My father passed away in Cleveland, Ohio. He had a bank account with $100,000 in it. I will be receiving this money . I live in California. Will I have to pay taxes on the money when I receive it?

California Inheritance Tax (death tax) [ 1 Answers ]

I inherited property in a different state a few months ago in 2007 and I need to know if there is any California tax because of this. The state I inherited the property has no inheritance tax so if there is tax in California, do I have to wait until the "possession of ownership" documents have been...

Inheritance tax [ 1 Answers ]

Do I have to pay the state of New Jersey tax on an inheritance of less than $50k in 2006? Thank you, DC

Inheritance tax [ 1 Answers ]

Hi, I am so confused with misinformation I hope you can help. I am a resident alien living in the US (in Colorado) and have been here for 23 years. My mother, who lived in England, died recently and her estate is being divided between me and my brother. Our share of inheritance tax has been taken...

View more questions Search