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Forum|Forum|3 years ago
November 16, 2022
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Hello. I was deeded my parent's home after the death of my mother but before the death of my father and the deed called for the transfer of the property to me upon the death of both my parents. Upon the death of my father in 2019, I became the sole owner of the property. I rented the property for 3 years and sold it in 2022. What are the tax consequences of this sell if any?

rferreira 1

Level 4

Your basis of the property was the fair market value on the date you inherited it. To that, you would add any capital improvements you made to the property (roof, windows, heating or A/C, etc). You would then reduce your basis by the amount of depreciation you took over the last three years. This is now your adjusted basis for determining any capital gains. Subtract that from what you received on the sale and this is your taxable capital gain.

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