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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
Satisfied Customers: 585
Experience:  10 years experience
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Y mother left her house to me three years ago when she died

Customer Question

y mother left her house to me three years ago when she died I am wondering what kind of taxes I will have to pay when i sell it
JA: The accountant will know how to help. Please tell me more, so we can help you best.
Customer: just trying to find out a tax percentage i'll owe when i sell an inherited home
JA: Is there anything else important you think the accountant should know?
Customer: no thats it
Submitted: 8 months ago.
Category: Tax
Expert:  emc011075 replied 8 months ago.

Hi. My name is ***** ***** I will be happy to help you.

It depends how much the house increased in value in the last three years. Your capital gains will be difference between the fair market value on day your mother passed away and the sale price reduced by selling expenses.

The capital gains will be added to your other income to determine tax bracket for capital gains.

Expert:  emc011075 replied 8 months ago.

First you will need to determine your capital gains.

Sales price

- your basis (fair market value on day of inheritance)

- selling expenses

= capital gains.

Have you used the house as your principle residence since than by any chance?

Once you determine your capital gains, than you will add all your income and the capital gains to determine your taxa bracket.

In 10 - 15% tax bracket your capital gains rate will be 0

in 25 - 35% tax bracket your capital gains rate will be 15%.

Most people people pay 15% on capital gains when they sell a real estate.

Any questions?