Silver Spring, MD asked in Tax Law for Delaware

Q: My mother passed away and left me and a sibling a home we live in md do we have to pay taxes when we sell the house

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1 Lawyer Answer
D. Mathew Blackburn
D. Mathew Blackburn
Answered
  • Tax Law Lawyer
  • Englewood, CO

A: You'll have long term capital gains (Carryover holding period from the deceased) equal to the sales amount less the fair market value on the date of death (due to stepped up basis) (or alternate valuation date if that was used), less any costs of sale.

It's a capital asset with no exclusion since it's not your personal residence. So when you sell it you pay tax on the net between the sales price and the adjusted basis. That'll be split based on ownership.

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