Welcome back! I was waiting for you to answer!
If you have no idea what the cost of the renovation would be, then you would have to use zero. That would leave you with the cost basis of the house, which would be about $49k, as I stated above. Assuming your income is $12k from Social Security, your Federal income
tax would be about $6,900 if you sold the house for $175k, and your Federal income tax would be $3,150 if you sold it for $150k. That will give you a range of what you should expect. Any costs that you have to pay at close (realtor's commission, transfer taxes, title costs, title insurance, etc.) will reduce the sales price and therefore reduce the tax.
income tax burden
would be about $5,800 if it sold for $175k, and about $3,600 if it sold for $150k. Again, any costs that reduce the gain for Federal
as I discussed above will also reduce the California tax burden.
You might check with some local realtors when you are in country to see if they could estimate the fair value in 1981, when your wife's uncle passed away, if the amount is higher than $49k, it would be to your benefit
. Another option would be the local property tax assessor
, so see what they listed the tax value at back then. It would benefit you to spend some time doing that, if possible.
I had another expert also tell me that pulling the cash out of the country in smaller amounts would be a good idea. Just remember to carry your documentation with you and declare it when you come through US Customs
I hope this answers your questions! If you have more, please let me know, and I will be happy to answer. If I have helped you, please rate me highly! I would appreciate it!
Again, thanks! Have a great week!