Skip to main content
Level 1
October 30, 2024
Question

Is profit from property sold in probate taxable income?

  • October 30, 2024
  • 3 replies
  • 42 views

My aunt passed in September 2024. Her house and car are paid for and will be sold in probate with profits split between heirs.  Is the payment to each heir taxable?  Will there be capital gains tax?  We are in Montana.

3 replies

Level 15
October 30, 2024
No text available
Level 15
October 30, 2024
No text available
Level 2
January 28, 2025

Most likely there will be no capital gains.  The fair market value of the house is reset when it's inherited.  After than the funds are only taxable if it exceeds whatever the threshold is for inherited money (many of millions). So unlikely to apply here.

 

Good luck

Phil