Have a Tax Question? Ask a Tax Expert
Hi. My name is ***** ***** I will be happy to help you.
First you need to determine how much of capital gains you will be reporting. To calculate your capital gains you will need to determine your basis. Because you got the house before your mother passed away, it will be treated as gift and you will need to use your mother's basis + expenses of sale divided by 2. Her basis will be the purchase price plus improvements (paid by her and you).
Once you determine your basis, than you can calculate your capital gains.
1/2 of the sales price
- 1/2 of the basis
- 1/2 of the sales expenses
= capital gains
Any questions so far? You may need to do some research to determine your basis but that's the only way to reduce your capital gains.
Here are NY state tax brackets. Once you determine your capital gains, you can use the table to determine your tax percentage based on your filing status and NY state income (in your case only the capital gains).
I see you read my respond. Do you have any questions? Is there anything else I can help you with today?