Hello again calamine,
Thank you for the additional information.
The first answer is that all 5 children will each pay their share of any capital gains tax
that might be due. However, if the home was recently inherited and is now being sold, there will likely be little or no gain to pay tax on.
When you receive property
through inheritance, the beneficiaries
receive a stepped up basis in the property. What that means is that your new starting basis in the home is whatever the fair market value is on the day you inherited the property. Your gain is figured by taking the sale price of the home less your new basis. If you sell the property soon after the death of the decedent, then chances are you will be selling it for the same market value as your basis, and you will have no gain.
Whatever gain you might have would be split 5 ways and the gain is taxed as a long term capital
gain. The rate
for long term capital gains is currently capped at 15%, so that is the maximum amount you would pay on any gain from the sale of this property.
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Thank you calamine, and let me know if you have more questions.