I inherited a share of a property (land with house) with an estimated sale value of $500,000-800,000 for my share. Prior to selling, are there any measures I can take to delay paying taxes on the proceeds from this sale, including inheritance tax or capital gains? Are there options such as using the proceeds to repurchase a similar property? Or structuring a trust? The land portion of this property was used as a recreational business for many decades, if that is helpful to know. Thank you.
When you inherit real estate, the basis [on which gain is computed] is the fair market value of the asset on date of death. SO if you sell it near the death date, there should be little gain or loss. There is no inheritance tax so you share of the sale is essentially tax free. The personal representative should tell you all this.
If the Massachusetts estate is over one million dollars it is subject to Massachusetts estate taxes. You have not specified whether the decedent was a Massachusetts resident, however. You may also want to consult with an accountant concerning whether you should put your interest into a trust.
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