Since the house was received as result of death there is no income and no income tax to the recipient. If the decedent had over $5.45 million in assets then the estate may be subject for estate taxes, but this would not affect the survivor. The basis in 50% of the house will be fair market value on the date of death. The other 50% of the house will have the original basis. If the survivor were to sell the house the basis would be used to determine gain and income tax would be paid on the gain. However, if this is a homestead then there may be income tax exclusions for sale of homestead if all requirements are satisfied.
The above is limited to federal taxation issues.
The above is neither advice nor opinion regarding taxation issues under California law.
The information provided by the Law Office of Magda Abdo-Gomez on this web site is intended solely for informational purposes. Any information on this site is general in nature, and since the law is always evolving, may not reflect current legal developments or the current state of the law on the particular topic. None of the information provided on this website should be considered professional legal advice nor should it be relied or acted upon in any way without consulting qualified legal counsel. Neither transmission, nor receipt, nor use of the information on this site constitutes or creates an attorney-client relationship, nor is the information provided on this site an invitation to form an attorney-client relationship. The Law Office of Magda Abdo-Gomez encourages you to contact the office if you require legal counsel, however, none of the information you communicate to us by e-mail or in any other manner will be assured of confidential treatment until the Law Office of Magda Abdo Gomez acknowledges and agrees that an attorney-client relationship has been created. In fact, until such a relationship is established, we will assume that any information you send us is not confidential and that we may represent parties with interests which may be adverse to yours. Magda Abdo-Gomez is licensed only in the state of Florida. However, bankruptcy and tax laws are federal in nature.
The advice provided is solid advice under general assumptions. However, the relationship of the survivor and the deceased party would be good to know in assessing how the above tax types will apply, and to what extent (and which exclusions may apply), especially for property tax assessment issues.
This is not advice but a statements of a general nature and not meant in any way to form an attorney/ client relationship. This advice is not to be relied upon legally operative, and not to be construed as advice for any particular matter. Seek a formal relationship with an attorney in your area who can address your concerns and your matter.
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