Selling an inherited home.

Forum|Forum|3 years ago
November 16, 2022
3 replies
11 views

I am a trustee to my parents living trust. My last surviving parent passed this April. I inherited her home. Am selling it now. It is free and clear, how would that affect my income reporting and income taxes for the this year. It is on market now and should sell before the end of the 2022 year.

rferreira 1

Level 4

I so sorry to hear about your loss. Your basis for the house you inherited is the fair market value on the day you received it. Add to that any capital improvements you might have made (roof, windows, etc.), and that figure would be your adjusted basis. Subtract that figure from what you sell it for, minus closing costs, and that is the amount that would be subject to capital gains.

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WarntAuthor

Level 2

Hi, Thank you for your answer. Following up, no matter the gain, whether above or below the stepped-up value, how does the sale price reflect in my income for the year? let's say it is below or at the stepped up value. So no capital gains. Would the value of the sale be added to my gross income?