How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Megan C Your Own Question
Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16547
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
23669918
Type Your Tax Question Here...
Megan C is online now
A new question is answered every 9 seconds

I just sold the condo I inherited from my mom, how can I avoid

This answer was rated:

I just sold the condo I inherited from my mom, how can I avoid paying the most tax?

Megan C :

Hello! I am a CPA here to assist you with your tax questions. My goal is to provide you with excellent service today.

Megan C :

I'm sorry to hear about the death of your mother.

Megan C :

When did your mom pass away, and did you receive title to the property while your mom was alive, or after she passed?

Megan C :

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.

Megan C :

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.

Megan C :

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

Megan C :

Please reply with more information for me, so that we can give you more personalized information.

Customer:

Mom passed away about 5 years ago. I received title after she passed.

Megan C :

Okay, then your basis is equal to the value of that property when she passed away

Megan C :

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

Megan C :

If it has increased 2% then you would get an appraisal now and subtract 2% for your basis 5 years ago.

Megan C :

I hope this makes sense

Customer:

She lived in Florida and my check amounted to a little over $1,000. over what she originally paid.

Megan C :

It's based on the value of the property when she died.

Megan C :

It's not based on what she paid for it.

Megan C :

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

Customer:

OK, I see what you mean. Thanks.

Megan C :

You're welcome. Did you have more questions for me tonight?

Customer:

No.

Megan C :

Okay. If you would, please rate my response as "excellent" so that I may receive credit for assisting you today

Megan C and 3 other Tax Specialists are ready to help you
Thanks for the positive rating, and generous bonus. It was a pleasure working with you today. Please come back and visit me for any of your tax, finance, or social security questions.

Related Tax Questions