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leaserut
Level 2

If my sister died in Louisiana and I live in Oregon and inherited money from her, along with proceeds from sale of her home, do I have to file a Louisiana state return?

 
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Hal_Al
Level 15

If my sister died in Louisiana and I live in Oregon and inherited money from her, along with proceeds from sale of her home, do I have to file a Louisiana state return?

Simple answer: no, you do not need to file a LA tax return.

In inheritance is not taxable income. In the unlikely event that there was a capital gain realized when the house was sold, a LA state return may be required to report the gain.

If the estate sold the house, an estate return is required to file. If you took title to the house and sold, you would be required to report the sale. OR will give you a credit for any tax paid to LA

The cost basis in an inherited house is the fair market value on the date of death. After expenses of sale, there is seldom a capital gain when an inherited home is sold; so no LA tax return is required.

For federal and OR state, you may even have a capital loss to report.

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2 Replies
Hal_Al
Level 15

If my sister died in Louisiana and I live in Oregon and inherited money from her, along with proceeds from sale of her home, do I have to file a Louisiana state return?

Simple answer: no, you do not need to file a LA tax return.

In inheritance is not taxable income. In the unlikely event that there was a capital gain realized when the house was sold, a LA state return may be required to report the gain.

If the estate sold the house, an estate return is required to file. If you took title to the house and sold, you would be required to report the sale. OR will give you a credit for any tax paid to LA

The cost basis in an inherited house is the fair market value on the date of death. After expenses of sale, there is seldom a capital gain when an inherited home is sold; so no LA tax return is required.

For federal and OR state, you may even have a capital loss to report.

leaserut
Level 2

If my sister died in Louisiana and I live in Oregon and inherited money from her, along with proceeds from sale of her home, do I have to file a Louisiana state return?

Thanks so much!
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