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Yes, it does affect your basis and yes, the rules have changed.
1. When the owner of a home dies, the tax basis of the property -- the amount from which gain or loss is determined upon sale -- is "stepped up" to the date of death value. When a married couple owns a home jointly, at least half of the basis is stepped up (in community property states, the entire basis is stepped up).
2. You won’t pay taxes on the first $250,000 (also known as a gain) you make from the sale of your home. If you file jointly, you won’t pay taxes on the first $500,000.
That income is free and clear as long as:
TurboTax will show you if your home sale is taxable, but you’ll need to upgrade your account to TurboTax Premier. Ready to upgrade and enter your home sale info? Follow these steps:
Open (continue) your return in TurboTax. If you’re not sure you’re in your return, click the orange Take me to my return button.
Related Information:
Yes, it does affect your basis and yes, the rules have changed.
1. When the owner of a home dies, the tax basis of the property -- the amount from which gain or loss is determined upon sale -- is "stepped up" to the date of death value. When a married couple owns a home jointly, at least half of the basis is stepped up (in community property states, the entire basis is stepped up).
2. You won’t pay taxes on the first $250,000 (also known as a gain) you make from the sale of your home. If you file jointly, you won’t pay taxes on the first $500,000.
That income is free and clear as long as:
TurboTax will show you if your home sale is taxable, but you’ll need to upgrade your account to TurboTax Premier. Ready to upgrade and enter your home sale info? Follow these steps:
Open (continue) your return in TurboTax. If you’re not sure you’re in your return, click the orange Take me to my return button.
Related Information:
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