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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16580
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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I reside in Oregon and own a home in Oregon. My late husband

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I reside in Oregon and own a home in Oregon. My late husband and I owned this home as an estate by entirety. What would be the tax consequences for me if I sell this home? I read somewhere that there would be none if home value is below $500.000 and if I sell it during two years of his death.

Megan C :

Hello! I am a CPA here to assist you with your tax questions. My goal is to provide you with excellent service today.

Megan C :

What did you initially purchase your home for, and did you make any significant capital improvements during the years?

Megan C :

So, if you purchased the home for $100,000 and did a kitchen remodel for $12,000 your basis in the home would be $112,000

Megan C :

You only owe tax on the amount that the sales price exceeds the basis. So, if you sold your home for $110,000 you would have no tax because you would have no gain.

Megan C :

If you sold the house for $120,000 you would have a gain of $8,000 --but still no tax would be due because you are able to exclude gains of up to $500,000

Megan C :

If you sell within 2 years you can exclude the entire $500,000 of gain. If it takes longer than 2 years you can exclude $250,000

Megan C :

There's a good article about this topic, HERE

JACUSTOMER-daz0kv82- :

I don't know the amount the house was purchased for back in 80's. The only improvement was the new roof I put up, that cost about $16,000. According to the property tax statement the house value is about $350.000. What I would like to know if it is the truth that I would be able to exclude gains of up to $500.000 in Oregon

Megan C :

Yes, it's true that you can exclude up to $500,000 in gains in Oregon provided that you sell the house within 2 years of your husband's death. You can find your purchase price at your local office that holds real estate deeds - they will have a record of it.

Megan C :

And you can add $16,000 to whatever it cost to purchase the home.

JACUSTOMER-daz0kv82- :

Thank you Megan. I am relieved by this information. I appreciate your help

Megan C :

You're welcome. If you would, please rate my response as "Excellent" so that I may receive credit for assisting you today

Megan C :

You can rate using the feature located along the bottom of your screen

Megan C and other Tax Specialists are ready to help you
Thanks, Dina for your positive rating. Please come back and visit me any time you need a tax, finance, or social security question answered. It was a pleasure working with you today.