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CGassist.168
CGassist.168, Accountant
Category: Capital Gains and Losses
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Experience:  Tax Accountant
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I have inherited my fathers house in along with my brother

Customer Question

I have inherited my fathers house in Virginia along with my brother and sister. They are both married, but I am single. I have never owned a home. They do own a home. Do I have to pay capital gains tax on my share?
Submitted: 10 months ago.
Category: Capital Gains and Losses
Expert:  CGassist.168 replied 10 months ago.

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.

TRANSLATION:

The cost basis of the property is the FMV of the property at the time of death.

Let me know if I can be of further assistance to you regarding this matter.

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