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The proceeds from the sale of an inherited house can be subject to capital gains tax, but the tax is typically calculated based on the difference between the sale price and the property's fair market value at the time of the original owner's death, known as the "step-up in basis." This means that if the house appreciates in value after the original owner's death, only the gain above the stepped-up basis is taxable. Additionally, depending on the amount of the gain, there may be exemptions or deductions available. It's advisable to consult a tax professional for specific guidance based on individual circumstances.
What else can I help you with?
Are proceeds from the sale of a second home taxable?
Not the entire proceeds, just the capital gain.
Selling grandmothers house with a lean on it?
The lien will need to be paid from the proceeds of the sale.
How should the proceeds of a house sale be split among the owners?
The proceeds of a house sale should typically be split among the owners based on their ownership percentage or as agreed upon in a legal document such as a co-ownership agreement.
Are sale proceeds of a car taxable income?
Only if you made a profit; i.e., you received more than you paid for it. Then you would pay tax on the gain.
Will the proceeds of Moms house sale have to be used for nursing home before we apply for medicaid even tho it was in me and my sisters name?
If as seems likely, your Mom was the owner of the house (i.e., her name was on the title/deed), the proceeds of the sale of that house will have to be used for her nursing home care or other medical care.
Do you have to pay mortgage if your house is for sale?
Yes, you are responsible for your mortgage payment until the day of closing the sale to a new owner of the house. Any remaining balance will be paid through the proceeds at closing.
Are sale proceeds of a home taxable income?
Yes, the sale proceeds of a home can be considered taxable income, but it depends on certain factors. If you sell your primary residence, you may qualify for a capital gains exclusion, allowing you to exclude up to $250,000 ($500,000 for married couples) of gain from the sale if you meet specific ownership and use tests. However, any profit exceeding these limits may be subject to capital gains tax. It's advisable to consult a tax professional for guidance based on your individual situation.
Do you pay taxes on sale of inherited house?
i personally dont think you would have to pay sales tax on a house that you inherited unless you are paying for the utilities lighting and all the heating and cooling soo yes and no.
Your house has bee sold at a sheriff sale the proceeds of the sale covered the first mortgage Are you still required to pay the second mortgage?
The second mortgagee can indeed go after you for payment.
How isInherited property by 5 siblings one sibling has liens that will be more than her proceeds from her portion of the sale of the property how is that handled in South Dakota?
In South Dakota, if one sibling has liens that exceed their portion of the proceeds from the sale of inherited property, those liens can be addressed during the settlement of the estate. The proceeds from the sale can be used to pay off the liens before distribution among the siblings. If the liens amount to more than the sibling’s share, they may not receive any proceeds, but the remaining siblings will still receive their respective shares. It is advisable to consult with a probate attorney to navigate the specifics of such situations.
If your car is repossessed can they take your house if you do not pay?
NO, they can "attach" the house so that IF you ever sell it, they will be paid FIRST out of the sale proceeds. READ your contract to see what you agreed to when you borrowed the money.
If a house that belonged to a decedent is sold do the proceeds of that sale become cash assets of the estate?
Yes. The proceeds will be used to pay the debts of the decedent and the costs of probate and the remaining balance will be distributed to the heirs according to the will or the laws of intestacy if there is no will.
