My husband inherited his mothers estate. She passed less than one year after he moved out and the house was sold 11 months after she passed. The money from the house went to him less the taxes owed. Will he have to pay taxes on the money from the sale of the house?
Generally the answer is no, the house "cost basis" is the fair market value of the house at her time of death. So gain or loss is based upon the sale price, less all costs, less the FMV of the house when she died.
You need to get a tax lawyer to help you with this.
As my colleague mentions, there is no tax to the person receiving the inheritance, and as an additional benefit, your husband takes the house at its fair market value at the time of the transfer. This is huge. For example, if his mother purchased the house for $100,000 and later sold it for $200,000 she might have owed capital gains tax on the difference between the purchase price and the sale price.
Continuing the example to your husband's case. He takes the house with a cost basis of $200,000 (the fair market value on the date of death). If he sold it tomorrow for the same value there would be no tax to him.
That said, his mother's estate is responsible for its capital gains tax, if any. For most deceased estates no tax will be owed if the value of the estate's assets is less than $5.6 million.
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