Facts About Selling A Inherited House
There are certain aspects of selling a inherited house that are the same as any other home. However, there are other factors that will be different and you need to know what they are. When you are aware of these facts, you will never be caught off guard during the sale.
Inherited Property Does Not Quality For Home Sale Tax Exclusion
Normally, when you sell a house that you have lived in for at least 2 years of the previous 5, you will be able to take advantage of a tax exclusion. This exclusion allows up to $250,000 of the sale proceeds to be taken by the seller tax-free. This is not always something that you will be able to benefit from when you have an inherited home. The only way that you will qualify for this exclusion will be to live in the inherited home for the next 2 years.
Take Advantage Of The Stepped-Up Tax Basis
While selling a inherited house will not always be eligible for tax exclusion, you can take advantage of a stepped-up tax basis. The proceeds of a house sale are generally calculated using the purchase price and the cost of any improvements made to the home. However, with an inherited home, the tax basis will be the fair market value of the property at the time of the previous owner’s death. This was put in place to ensure that beneficiaries are not subject to substantial tax when a property dramatically appreciates over the years.
Wait For The Estate To Go Through Probate
Before you are able to sell my house fast, you will have to wait for the estate to go through probate. Most states do have a summary probate system, but this is generally only available to small estates to a set amount. Estates have real estate will generally exceed the threshold for these systems.
Be Careful When Multiple Family Members Are Involved
There are times when a property is left to more than one family member and this will make the legal nuances more complex. There will also be a clash of personalities which will make the sale of the house harder. In these cases, it is recommended that you hire an attorney to help with the sale and to sort through the other legal issues that will come with this.
There are many facts that you need to know about selling an inherited house. These facts will help you understand the tax implications of the sale and what to expect. Need to sell my house fast good We Buy Houses Connecticut