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Gerri A Harrison CFP EA
Gerri A Harrison CFP EA, Enrolled Agent
Category: Tax
Satisfied Customers: 252
Experience:  27 years of preparing income tax returns - both personal and small business
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We sold my parents home who are now both deceased for $439,000.

Customer Question

We sold my parents home who are now both deceased for $439,000. It will go into his estate which will total $475,000 but will be divided equally for six siblings. Will we be paying inheritance tax and or capital gains tax, and what rate should we expect?NYS
Submitted: 6 years ago.
Category: Tax
Expert:  Gerri A Harrison CFP EA replied 6 years ago.

There is no inheritance tax in NYS. It is an estate tax that follows the federal estate rules. At $439k you will not owe estate tax, you are below the limits under the current law.

 

Regarding capital gains tax - the estate receives a stepped up basis for the value of the house to the value at the date of death. If you did not sell it for more than that value you will owe no capital gains on the sale of the house.

 

Is the rest of the estate cash? If that is the case you will owe no income tax on that either.

 

There is the potential that no tax will be due on any of this money.