Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 08-09-2017, 05:22 AM
Junior Member
 
Join Date: Aug 2017
Posts: 1
Capital Gains/Losses for sale of inherited property if sold under fair market value

I've been told by a few people that If I sell a property I inherited a couple thousand under the county appraised value before the death, that it will be completely tax free, because it is considered a loss on a long term asset. Is the true?



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 08-09-2017, 06:54 AM
Moderator
 
Join Date: Oct 2010
Posts: 4,724
Quote:
Originally Posted by Af716 View Post
I've been told by a few people that If I sell a property I inherited a couple thousand under the county appraised value before the death, that it will be completely tax free, because it is considered a loss on a long term asset. Is the true?
Whenever the individual dies and passes property onto you, the cost basis of that property then changes. The cost basis will change automatically to the fair market value of that property on the day that the individual died. Your basis in the inherited property is the fair market value the day the previous owner died. For example, say, your father bought his home for $150k, but it was worth $250k on the day he died. The second figure is your basis: If you sell for $200k, you have a $50k loss rather than a $50k gain. Normally you class gains and losses as short term or long term, depending how long you've held the property. With an inherited property, you always class the gain or loss as long term.Unless you converted the house to a rental, you can not claim the loss on your return. no loss can be claimed from the sale of a decedent?s personal residence unless the property has been converted to an income-producing purpose (such as a rental).



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Capital gains on Inherited property in Louaiana Dan2010 Capital Gains 1 07-20-2017 06:33 PM
Capital Gains On Inherited Property Outside Usa mohitag Capital Gains 1 06-07-2016 05:18 PM
Capital Gains on Inherited Property Kev28 Capital Gains 0 11-15-2014 03:54 PM
question regarding capital gains tax on property sold in 2013 heavyfuel Estimated Taxes 4 11-11-2013 12:00 AM
US capital gains tax on sale of foreign inherited property jkoshi Capital Gains 6 01-24-2012 04:51 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning