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Inherited home sold

I just sold my mom's home, which I inherited last year.  We had the house appraised at date of death.  I sold the home for $60000 more than that appraised amount.  How do I compute the capital gains taxes that I will now owe?  My understanding is that I will need to pay the capital gains on just the amount over the appraisal at date of death.  Please clarify as I was going to send an estimated payment so I don't get charged interest for not paying in a timely manner.

Thank you!

2 Replies

Inherited home sold


@mmoorefam4 wrote:

How do I compute the capital gains taxes that I will now owe?


If $60,000 is your net long-term capital gain (long-term because the property was acquired from a decedent), then you can use TaxCaster (link below) to get an idea of your tax liability. Note that TaxCaster has not been updated for the 2021 tax year.

 

https://turbotax.intuit.com/tax-tools/calculators/taxcaster/

 

 


@mmoorefam4 wrote:

Please clarify as I was going to send an estimated payment so I don't get charged interest for not paying in a timely manner.


You will not owe a penalty for underpaying your estimated tax if:

 

1) The total tax shown on your 2021 return minus the amount of tax you paid through withholding is less than $1,000. 

 

OR

 

2) You pay at least the smaller of 90% of your 2021 tax, or 100% (110% if your adjusted gross income (AGI) for 2020 was more than $150,000 ($75,000 if your 2019 filing status is married filing separately)) of your 2020 tax.

 

 

See https://www.irs.gov/instructions/i2210#idm140032291297136

 

 

 

Inherited home sold

sorry for your loss. you are correct. the holding period is automatically long-term.  the gain is the sales price less sales expenses less the Fair Market value on the date of her death

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