Do I owe capital gains tax on inherited property that sold in 2016 for less than the assessed value from a 1999 death that was fully probated in 2016?

[kenkavon]

I inherited property in 2016 and sold the property in 2016.  The property was assessed at $200,000 and sold for $130,000.  My parents died in 1999 and the estate was settled in 2016.  I had been paying property taxes since 1999.  In 1999 the property was assessed at $100,000.  Do I owe Capital Gains Tax?

[Critter]

Yes you do... Sales price - (Inherited value + cost of sale) = profit/ long term cap gains.  What it was appraised for at the time of sale is immaterial. 

[TaxGuyBill]

So your starting "Basis" (similar to cost) is the Fair Market Value on the Date of Death.  The cost of any improvements is also added to the Basis.

If the property was used as a rental (or a business), depreciation will lower your Basis, creating a larger taxable gain.

[jenben221970]

I inherited a home 2 yrs ago never had deed switched over until the day before sale. home appraised at 65,000 sold for 63,900.00 what is my capital gains ( no mortgage due)