Possibly
yes, but probably no. The fact that the decedent used the property, as a home,
is not relevant.
When property
is sold, there is usually a gain or loss on the sale. The gain or loss is
calculated on the difference between what the property sold for and it’s “cost
basis”. Cost basis is usually what the property was bought for. But, in the
case of death, the cost basis “steps up” to the fair market value on the date
of death. If the property is sold shortly after being inherited, there is
unlikely to be any gain. Factoring in the expenses of sale (e.g. real estate commission),
there is usually a loss for tax purposes. Losses may or may not be deductible depending
on how the property was used after being inherited.
