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TaxRobin
TaxRobin, Tax Preparer
Category: Capital Gains and Losses
Satisfied Customers: 15180
Experience:  15+ years in Tax preparartion as well as Instructor for tax law, theory, and application
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My wife was on the house title with her mother she passed

Customer Question

my wife was on the house title with her mother she passed away so we sold the house gain was about 100k does she have to pay tax on that?
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. Please tell me more, so we can help you best.
Customer: no more
JA: Is there anything else the Accountant should be aware of?
Customer: no
Submitted: 8 days ago.
Category: Capital Gains and Losses
Expert:  TaxRobin replied 8 days ago.

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.

Expert:  TaxRobin replied 8 days ago.

Your wife inherited a portion of the property and she owned a portion so she has to do a little more calculating.
Half the house gets a step up in value to the date her mother passed away for her cost.
Then the other half is the half of original cost because she owned half before her mother passed.
Any real gain is taxable
Here is an example:
If the house had been purchased for $50000 then she had cost of $25000 and mother had $25000.
When the mother passed away the house was valued at $200,000. So your wife gets to claim half of that with her $25000 and now has $125,000 as her cost.
Let me know if you need me to explain further.
Any amount sold for over $125,000 is taxable.

Expert:  TaxRobin replied 8 days ago.

Please let me know if you need more information.
If you do not then a positive 5 star rating is appreciated.

Expert:  TaxRobin replied 4 days ago.

Hello, I am checking back to see if you responded.

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