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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15730
Experience:  15years with H & R Block. Divisional leader, Instructor
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I inherited my grandmother's home which has been my primary

Customer Question

I inherited my grandmother's home which has been my primary residence all my life. I live in New York City. I'm selling the house about a year after her death. Does capital gain apply to me being I've lived here over 2 years?
JA: The Accountant will know how to help. Is there anything else the Accountant should be aware of?
Customer: Not that I can think of. I,
Submitted: 11 months ago.
Category: Tax
Expert:  Robin D. replied 11 months 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:  Robin D. replied 11 months ago.

To use the IRC 121 and exclude gain (up to $250k for single and $500k for married) you need to not only have lived there for at least 2 years out of the 5 years prior to sell but have owned the property too.

If you sale 1 year after inheriting you do not meet the ownership part.

You may not have any gain. When you inherit your cost is the fair market value on the date your grandmother passed away. If the value is the same as the sale price you have no gain and no tax to pay.

Has the house increased that much over the one year?

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)

Expert:  Robin D. replied 11 months ago.

Did you need clarification especially about calculating the gain?