Q: My Mother's house was transferred on death to me. What kind of taxes will I have to pay when I sell it?
A: Under Federal law should be entitled to a step up in basis. That means that you will be deemed receiving the house valued at the date of death not at the date when your mother purchased the home. Thus, you will only be responsible for tax on the increased value since the date of death.
A: Your basis would be stepped up to the fair market value of the property at mom's death. The difference would be the gain and may be taxable, unless you live in it for two years. Then you may excluded up to $250K or $500k of the gains, depending on your martial status.
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