- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Get your taxes done using TurboTax
The fact that your capital gain is coming from an estate may change your tax liability. To follow-up on the comments from @HelenC12, generally, where a property is sold by the executor or personal representative following the deceased death, the estate will be liable for any capital gains tax.
When you inherit property, whether real estate, securities or almost anything else, the IRS applies what is known as a stepped-up basis to that asset. This means that for tax purposes the base price of the asset is reset to its value on the day that you inherited it. If you inherit property and then immediately sell it, you would owe no taxes on those assets (assuming you had no gain). That's why it's important to know the value of the asset as of the date of death of the decedent if you later decide to sell the asset.
Regarding the carryover losses. Those will get applied to your capital gains. You cannot choose when to use them as they are applied in the year that can offset capital gains.
**Mark the post that answers your question by clicking on "Mark as Best Answer"