Hello again sher,
There is no inheritance tax at the federal
level or in Oregon.
You are not paying taxes on the value of the home that you received. That passes to you without any tax being owed.
The only time you owe tax is if the home increases in value after you inherit it, and then you would pay tax on the gain only.
In other words, as an example, if the house was worth $200,000 when you inherited it, then you do not pay tax on the value of that $200,000. If you sell the home a month later for $205,000, then you do pay tax on the gain you had of $5,000. That is not inheritance tax. You inherited the property without paying tax on it, but once the value increases and you sell it for a gain which is over the value of what you inherited, that is the only time tax becomes due.
It does not matter whether or not the home goes through probate. The same tax rules
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Thank you sher.