Capital Gains and Losses
Capital Gains Tax Questions? Ask a Tax Advisor for Answers ASAP
I take it that the home ill be sold. If this is the case, due to the step up in basis, there will likely not be any capital gains.
Step Up In Basis:
The readjustment of the value of an appreciated asset for tax purposes upon inheritance. With a step-up in basis, the value of the asset is determined to be the higher market value of the asset at the time of inheritance, not the value at which the original party purchased the asset.
The cost basis of the property is the FMV of the property at the time of death.
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