How is capital gains tax calculated if my 2 brothers buy me out but sell the house in the future?

Asked 2 months ago - San Diego, CA

My 2 brothers and I recently inherited a house. If I sell my share to them I assume i will incur capital gains tax above the date of death value. What happens if they sell the house in 5 years? Are they responsible for capital gains from my mother's date of death between the 2 of them or are they credited an amount since they bought me out?

Attorney answers (3)

  1. Janet Spiro Martin

    Pro

    Contributor Level 13

    1

    Lawyer agrees

    Answered . This is a CPA question not a legal question.

    The foregoing is for informational purposes only and may not be relied on as attorney-client advice.
  2. Amanda Marie Cook

    Contributor Level 15

    1

    Lawyer agrees

    Answered . Your capital gains are determined at the time of YOUR sale. If they later sell the property, it will be irrelevant to you. Their basis in your share will be wait they paid; their basis in their inherited shares will be DOD value. In other words, the property will have split basis calculations.

    THESE COMMENTS ARE NOT LEGAL ADVICE. They are provided for informational purposes only. Actual legal advice can... more
  3. Shelley Ann Elder

    Pro

    Contributor Level 19

    1

    Lawyer agrees

    Answered . They should check with an accountant as to the capital gains in 5 years. Who knows what the law will be then.

    Mark here if this answer is helpful

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