example. house is inherited in jan 2021. official paid assessment value is 700k. 3 years later the house is sold for 926k.
there is the usual capital gains assessment discussion which we beat to death.
but the 226K difference between value at inheritance and value at sale is subject to personal income tax.
I'm sorry I am not understanding what you mean. What are you saying?
That there is a capital gain tax AND a separate personal income tax?
That is not correct. There is only one income tax (assuming no business use of the house/rental income/depreciation expense etc.) -- the personal income from the sale, which is the net gain, and which is taxed at the preferential rate for income with a capital character not an ordinary income character.
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