Property is worth $300,000. but I have been left 1/4 of it. This is the total estate.
Guardianship Law Attorney
Assuming that the Decedent still had $300,000 of their exemption from estate tax available, then you would have no estate tax due on the inheritance. If the date of death value of the property is $300,000 and you sell your 1/4 interst for $75,000, you would not incur any tax. If you sell your share for $80,000, then you would pay tax on the $5,000 of gain. I hope that helps. Please remeber to select the best answer.
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Have you sold the property?
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First, inheritance is not subject to income taxes. Second, California does not have an inheritance tax. As pointed out, the exemption from Federal estate taxes was $5M in 2010 and 2011, 5.120M in 2012 and 5.25M in 2013.
That said, what is really important is that you document the date of death value and make sure you can prove it such as by an appraisal. The date of death value will be your basis for determining taxable gain if the property is later sold.
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