Possible Capital Gains/Income Tax Liability

[Karen1949]

My mom recently passed away. She had signed a Transfer of Deed to my name upon her death.  My question is, once her house is sold and her estate distributed to her survivor's, will I be responsible for any capitol gains or come/sales taxes that would be assessed after her property sells?  If so is there a way to calculated and pay at the time of the property being sold?

[PatriciaV]

Has the title to the property been transferred to you. If so, why would the estate sell the home that belongs to you? 

It is true that the sale of an inherited home may result in a taxable gain if the home increased in value between the time you inherited it and the date it was sold. Your cost basis in the home is the fair market value on the date of death. Subtract that from the selling price (less selling costs) to calculate the gain.

You can pay estimated taxes from the sales proceeds if you wish. The real estate agent or title company for the sale should be able to help you with that.

[tagteam]

If transfer on death (TOD) deeds are valid in the state and you are the sole beneficiary, then you acquired the property on the date of her death and your basis should be the fair market value of the property on that date.

If you happen to sell the property for more than your basis, you will have a capital gain.

[tagteam]

Has the title to the property been transferred to you. 

Yes, that is correct; title passes to the beneficiary immediately upon the death of the grantor (no action is necessary and title passes outside the estate).

[DawnC]

You can remit any tax you may owe on the sale at the time of the sale.   The capital gain, if any, is the difference between the proceeds you receive from the sale and your cost basis (FMV on the DoD).