First question: Will I have to pay long term capital gains taxes, since I did not have a choice in the liquidation of assets until now because the assets were tied up in a life estate to my stepfather until he either passed away or vacated the property, which is is now doing on 9/9/2022? All inherited property is automatically long term even if you sell it within one day of the decedent's death.
Second Question: Are Zillow estimates valid for determining the cost basis, are if audited do you require a documented appraisal which would cost me $500? Zillow estimates can be used however the selling realtor should be able to give you a historical estimate of DOD value which would be better and stand up in an audit better.
Last Question: My primary residence is in MD? If I do have to pay long term capital gains taxes, will I have to pay federal, Maryland, and Florida taxes on the capital gains? You will have to pay MD taxes on all income during the year no matter where is comes from but as a consulation Florida doesn't have any state income tax to worry about.
