Will I have to pay any taxes at all on what I made on the house that I sold that was inherited?

Asked over 2 years ago - Saint Paul, MN

In Minnesota, I inherited a home in 2009, then sold it in 2011 for 150,000 (less than market value and less than its worth in 2009.

Attorney answers (3)

  1. 5

    Lawyers agree

    Answered . The more important thing is the value at the time you inherited the home. You likely received a stepped-up basis in the home which equals the fair market value at the time you received it. So in essence, you will recognize gain or loss based on the 2009 value. It sounds like you will have a loss. even if you have a gain, if it is a primary residence that you have lived in for two years, you can exclude up to $250,000 in gain, but that doesn't sound applicable to you if the value has decreased in the time you had it.

    Christopher Larson
    Insight Law

  2. 3

    Lawyers agree

    Answered . Mr. Larson is 100% correct. Make sure you have a record of the value (tax basis) at the time of the deceased person's death and a record of how much it sold for and then go see an experienced accountant.

    This is not legal advice nor intended to create an attorney-client relationship. The information provided here is... more
  3. 1

    Lawyer agrees

    Answered . If the estate was probated (it should have been) then the date of death value should be in the probate records. If an estate tax form was prepared, it would be there too. If you have 100% valuation, the IRS would probably accept the property tax assessment. If they don't and you are audited, you might have to have a retrospective appraisal performed, probably $300 to $500.

    Why did you sell it for less than market value? The IRS could find that you need to report the sale at its true market value if it was a less than arms lenth transaction. Don't forget to deduct from the sale price or add to the acquisition value (basis) any improvements you made, costs of sale including brokerage, etc.

Related Topics

Property tax assessment

A tax assessment is an estimate of the value of your home that is used to calculate your property taxes. They are performed by a specialist called an assessor.

Steven Jay Eisenstein

Chapter 123 Corridor

If a property tax assessment in New Jersey is not based on 100% of true value it will be based on a published ratio. By way of example if you own property in Newark and you receive a 2011... more

Inheritance rights and estate planning

Inheritance rights refers to the rights most states give to a spouse (and in some cases, children or grandchildren) that prevent you from disinheriting them.

Can't find what you're looking for? Ask a Lawyer

Get free answers from experienced attorneys.


Ask now

36,339 answers this week

3,907 attorneys answering

Ask a Lawyer

Get answers from top-rated lawyers.

  • It's FREE
  • It's easy
  • It's anonymous

36,339 answers this week

3,907 attorneys answering