How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Attorney2020 Your Own Question
Attorney2020, Attorney
Category: Estate Law
Satisfied Customers: 2579
Experience:  Estate planning and wealth preservation attorney.
Type Your Estate Law Question Here...
Attorney2020 is online now
A new question is answered every 9 seconds

My Dad passed away in California in 1999. My Father and his

Customer Question

My Dad passed away in California in 1999. My Father and his wife (not my mother) had an AB trust. His wife lived in the house until she passed in 2010 then myself and my siblings inherited the property valued at about $600,000. When we sell it will we have to pay Inheritance or Capital Gains taxes? Thank you, ***** *****
Submitted: 2 years ago.
Category: Estate Law
Expert:  Attorney2020 replied 2 years ago.
You can receive a stepped up basis on the inherited property. So the value of the property at the time of death of the wife is the cost basis of the property. You will pay capital gains taxes on the difference between the stepped-up tax basis and the sale price.For example, suppose you inherit a house that was purchased years ago for $150,000 and it is now worth $350,000. You will receive a step up from the original cost basis from $150,000 to $350,000. If you sell the property right away, you will not owe any capital gains taxes. If you hold on to the property and sell it for $400,000 in a few years, you will owe capital gains on $50,000 (the difference between the sale value and the stepped-up basis). I hope that helped. Please ask any follow-up questions. Please rate my answer so that I may be credited for my time. Thank you.