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New Member
posted Jun 4, 2019 7:34:55 PM

Do my children have to pay capital gains on rental properties i own, when i die?

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1 Best answer
New Member
Jun 4, 2019 7:34:57 PM

It depends but they will not have to pay any capital gains tax on the property if the property is inherited. They will just get a step-up in the basis to the fair market value (FMV) on the date of passing.

After your children inherit the rental property - they would only have to pay any capital gains taxes between the FMV on the date of inheritance and date of a future sale. (Also Inherited property always qualifies for long-term capital gains treatment (even if held for less than a year)).

1 Replies
New Member
Jun 4, 2019 7:34:57 PM

It depends but they will not have to pay any capital gains tax on the property if the property is inherited. They will just get a step-up in the basis to the fair market value (FMV) on the date of passing.

After your children inherit the rental property - they would only have to pay any capital gains taxes between the FMV on the date of inheritance and date of a future sale. (Also Inherited property always qualifies for long-term capital gains treatment (even if held for less than a year)).