Posted on: 03rd Apr, 2008 05:35 am
will I have to pay inheritance tax on a home that I received through a will? I took care of a friend and she willed me her home, with an outstanding mortgage, I am currently selling it. Will I pay capital gains tax or inheritance tax?
Hi lharris,
Welcome to the forum.
You may have to pay capital gain tax if you profit any amount after selling the property. But you can also qualify for capital gain exemption tax.
Check out the capital gain exemption limit at http://www.mortgagefit.com/know-how/capitalgainstax.html#14089
Feel free if you have any further questions.
Best of luck,
Larry
Welcome to the forum.
You may have to pay capital gain tax if you profit any amount after selling the property. But you can also qualify for capital gain exemption tax.
Check out the capital gain exemption limit at http://www.mortgagefit.com/know-how/capitalgainstax.html#14089
Feel free if you have any further questions.
Best of luck,
Larry
Hi Iharris,
As far as I know, there is no federal inheritance tax applied on property of a deceased person. But there are some states which require anyone getting a deceased person's property to pay the inheritance tax. However, if you are selling the property, then you don't have to pay the state inheritance tax. Instead, you'll have to pay the capital gains tax rovided you don't qualify for the exemptions.
Take Care
As far as I know, there is no federal inheritance tax applied on property of a deceased person. But there are some states which require anyone getting a deceased person's property to pay the inheritance tax. However, if you are selling the property, then you don't have to pay the state inheritance tax. Instead, you'll have to pay the capital gains tax rovided you don't qualify for the exemptions.
Take Care