Have a Tax Question? Ask a Tax Expert
Hello! I am a CPA here to assist you with your tax questions. My goal is to provide you with excellent service today.
I'm sorry to hear about the death of your mother.
When did your mom pass away, and did you receive title to the property while your mom was alive, or after she passed?
If your mother recently passed away and you received the title to the house upon her death, your basis is equal to the fair market value on the date of death of your mom. If this was recent, then there will be little to no capital gains tax.
If your mother deeded the property to you while she was alive, then your basis is equal to her basis, which is the funds she has invested in the property - what she paid plus any improvements.
Then, if that's the case your gain is equal to the amount that your selling price exceeds the basis - this is what you pay tax on
Please reply with more information for me, so that we can give you more personalized information.
Mom passed away about 5 years ago. I received title after she passed.
Okay, then your basis is equal to the value of that property when she passed away
If you did not get an appraisal at that time, then you could get information on how the market in the area of the property has behaved since the time of her death
If it has increased 2% then you would get an appraisal now and subtract 2% for your basis 5 years ago.
I hope this makes sense
She lived in Florida and my check amounted to a little over $1,000. over what she originally paid.
It's based on the value of the property when she died.
It's not based on what she paid for it.
But, in 5 years not much has happened in terms of real estate prices....so I would anticipate you would have little to no gain
OK, I see what you mean. Thanks.
You're welcome. Did you have more questions for me tonight?
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