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RayAnswers
RayAnswers, Attorney
Category: Estate Law
Satisfied Customers: 41503
Experience:  Texas lawyer for 30 years in Estate law
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GM, I am 25% owner of my deceased mother property. FMV of

Customer Question

GM, I am 25% owner of my deceased mother property. FMV of property is 325,000.She died 11 years ago without a will and we are selling her home. How will proceeds be disbursed to the heirs? What is my tax liability?
Submitted: 1 year ago.
Category: Estate Law
Expert:  RayAnswers replied 1 year ago.

Hi and welcome to JA. I am Ray and will be the expert helping you today.

If your share of the estate is $80-$90k here then you would owe capital gains on the difference between the FMV at time she bought it and when you sold it.You would need to look at the tax assessor value when she purchased it.

It is possible here that the estate could claim the capital gain on a final return for your mother and she might qualify for an exception for most of this.The requirements for the exception are that she lived there 2 out of the last 5 years.Otherwise the estate pays the capital gain and you get your share of whats left after taxes.

There are no inheritance taxes on an amount under $5,430,00 so the potential capital gains will be the issue here.Long-term capital gains and qualified dividends. A top rate of 15% applies to qualified dividends and the sale of most appreciated assets held over one year (28% for collectibles and 25% for depreciation recapture) for single filers with taxable income up to $413,200 ($464,850 for married filing jointly).

You may want to speak to executor here to see if the estate can claim any capital gains and pay them prior to distribution.If mother could claim exemption it lowers taxes to the heirs greatly here.That would be the best way to handle this,

it would delay distribution until the taxes are filed and paid.

I appreciate the chance to help you today.Please let me know if you have more follow up.Thanks again.

Expert:  RayAnswers replied 1 year ago.

Florida has no state estate taxes and you do not owe federal ones here, it is solely going to be the capital gains issue I referenced above.

I appreciate the chance to help you today.Please let me know if you have more follow up. Thanks again.