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Richard
Richard, Tax Attorney
Category: Tax
Satisfied Customers: 54023
Experience:  29 years of experience as a tax, real estate, and business attorney.
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My Mother-in-law died and my wife is her only survivor. She

Customer Question

My Mother-in-law died and my wife is her only survivor. She left no will so my wife got her condo, worth about $130,000 and a small amount of cash. Does my wife have any tax liability on the sale of the condo? We live in Henrico County, Virginia.
Submitted: 8 months ago.
Category: Tax
Expert:  Richard replied 8 months ago.

Good evening. My name is ***** ***** I look forward to helping you.

No, she will have no tax liability. When her mother died, the basis of the property was adjusted under the law to its fair market value. So, when your wife sells it for that fair market value, there will be no gain on the sale and thus no tax. She will need to report the sale on her tax return to show the IRS not only the sale proceeds, but also the basis, so she can indicate no gain. Otherwise, the IRS will not be aware of the basis and will consider the the basis to be zero and the entire sale amount as gain.

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Expert:  Richard replied 8 months ago.

Good evening. My name is ***** ***** I look forward to helping you.

No, she will have no tax liability. When her mother died, the basis of the property was adjusted under the law to its fair market value. So, when your wife sells it for that fair market value, there will be no gain on the sale and thus no tax. She will need to report the sale on her tax return to show the IRS not only the sale proceeds, but also the basis, so she can indicate no gain. Otherwise, the IRS will not be aware of the basis and will consider the the basis to be zero and the entire sale amount as gain.

Thank you so much for allowing me to help you with your questions. I have done my best to provide information which fully addresses your question. If you have any follow up questions, please ask! If I have fully answered your question(s) to your satisfaction, I would appreciate you rating my service as OK, Good or Excellent (hopefully Good or Excellent). Otherwise, I receive no credit for assisting you today. I thank you in advance for taking the time to provide me a positive rating!

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