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TaxRobin, Tax Preparer
Category: Capital Gains and Losses
Satisfied Customers: 15731
Experience:  15+ years in Tax preparartion as well as Instructor for tax law, theory, and application
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Thank you.. my husband and i were left his dad's house in

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thank you.. my husband and i were left his dad's house in 2013 when he passed away. we want to sell the house and get a divorce after the house sells. is there a one time excemption for capital gain tax. or how do we figure out what we will owe?
JA: I love the idea of making big money with investments, but there are so many things that could go wrong. The Accountant will be able to help you. Is there anything else the Accountant should be aware of?
Customer: well i have talked to two different places and say different things.

Hello, I'm Robin. Welcome to JustAnswer. I'm reviewing your question now and typing up my reply. I'll post that in just a few moments.

When you sell property your only pay tax on the gain (difference in cost and sell price). When you inherit property your cost is the fair market value of the date of death of the deceased. When you inherited in 2013, that value is your cost so the difference in that and the sell price (less the costs to sell) is your gain or loss.

You may not have a gain if the property did not increase much since 2013.

There is no one time exclusion for capital gains tax. There is an exclusion for gain if this is your main home and you sell it (up to a limit ).

First calculate your correct gain.

Please let me know if you need clarification. If you do not then a positive 5 star rating is appreciated so I get credit for the response. (look for the STARS or SMILEY FACES)

Do you need clarification on the calculation?

Customer: replied 1 year ago.
I do I find out what house was worth when we inherited it in 2013
Customer: replied 1 year ago.
I don't have the money

You can check the records of the transfer to your names. If you cannot find that then you can request a real estate professional tell you the value back then. They track those numbers.

"I don't have the money" I am not sure what you mean that specific statement.

There may not be any gain at all and if there is not then there is no tax to pay. You have to report it but no tax will be owed.

I hope this has been informative.

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