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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 13336
Experience:  15years with H & R Block. Divisional leader, Instructor
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My brother and I inherited our dads house in April 2013,

Customer Question

My brother and I inherited our dads house in April 2013, appraised at 300,000 for the trust at the time...We sold the house for $410,000 in June of 2015. Do we pay state or federal taxes on this???!
Submitted: 9 months ago.
Category: Tax
Expert:  Robin D. replied 9 months ago.

Hello

The fair market value of the property on the date your father passed does set the basis or cost. You would owe tax on any gain above that value.

If the FMV was $300k and you sold for $410k then the gain is $110K. Both CA and federal would require tax on the $110K.

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Expert:  Robin D. replied 9 months ago.

Please respond below if you need clarification