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I just sold a cabin that was my inheritance. Do I have to pay taxes on that money. I heard something about capital gain? I want to take the money and put it towards my home mortgage. His this possible?
Thanks
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@Happy Sugar wrote:
I heard something about capital gain?
That gain would typically be the difference between the fair market value on the date of death of the person from whom you acquired the cabin and the selling price (less sales expenses).
If the sale was close in time to the date of death, there may be no gain whatsoever. It is almost always advisable to get a date of death appraisal from a certified real estate appraiser.
@Happy Sugar wrote:
I heard something about capital gain?
That gain would typically be the difference between the fair market value on the date of death of the person from whom you acquired the cabin and the selling price (less sales expenses).
If the sale was close in time to the date of death, there may be no gain whatsoever. It is almost always advisable to get a date of death appraisal from a certified real estate appraiser.
I received the cabin in 2009 and just sold in Nov 2022. Can the realtor that helped us sell give me an appraisal from 2009?
@Happy Sugar wrote:
Can the realtor that helped us sell give me an appraisal from 2009?
Yes. However, note that the IRS does not have to accept anything less than an appraisal from a certified real estate appraiser.
Well, I guess this was not a inheritance. My dad did a QuitClam Deed to have the cabin in my name. This was signed on April 3, 2009. I just recently sold the cabin on Nov 10, 2022. Do I have to pay taxes on the sell or pay Capital Gain. Need help with figuring this out...
Thanks
Thanks for the info on your father signing the property over to you by use of a Quit Claim Deed. That does change the answer to your question as the property is considered a gift.
To figure out the basis of property received as a gift, you must know three amounts:
For example: The property was purchased for $18,000 in 2001 by your father.
The FMV of the property was $25,000 at the time of the quit claim deed in 2009.
Your basis for the gain/loss calculation is $18,000, your father, the giver's basis in the property.
@Happy Sugar wrote:
Well, I guess this was not a inheritance. My dad did a QuitClam Deed to have the cabin in my name. This was signed on April 3, 2009.
You should consult with a local tax professional (and/or legal counsel).
You may be able to claim this is an implied life estate (i.e., that your father retained a life estate and you received a remainder interest).
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