Good afternoon, i inherited a house in 7/2014 the value was 950k and we sold it on 12/2017 at 1.125m do i have to pay capital gain taxes on it? If so what are the fees?

[SweetieJean]

Did you live in it?  Rent it out?

[pprimavera]

Did not live in and did not rent it my sister lived in it and she got 1/2 the inheritance.

[Zbucklyo · Accepted solution]

It sounds like you will have to pay the capital gains tax on half the gain, since this was never your personal residence.  Your sister, if she lived in the residence for two of the five prior years from the sale date, shouldn't have to pay tax if she didn't sell another personal residence in the prior two years.  Remember to net off selling expenses before determining the capital gains tax (which might be substantial at that price).  You are looking at roughly 60-90K in capital gains, which is likely to be taxed at 15%, but could be more or less depending on your other income.

Also, if you live in a state with an income tax, the gain is likely to be taxed there as well.