Is profit from property sold in probate taxable income?

My aunt passed in September 2024. Her house and car are paid for and will be sold in probate with profits split between heirs. Is the payment to each heir taxable? Will there be capital gains tax? We are in Montana.

posted

Most likely there will be no capital gains. The fair market value of the house is reset when it's inherited. After than the funds are only taxable if it exceeds whatever the threshold is for inherited money (many of millions). So unlikely to apply here.

Good luck

Phil