New Port Richey, FL asked in Tax Law for Florida

Q: My sister & I inherited a house. If I buy her out and then quickly sell, do I pay capital gains on the full sell price?

Or, do I still get to only pay capital gains on the sell price above what the house was worth at the time of my father's death?

I am concerned that, because buying her out constitutes a sale, I will lose the inheritance exemption.

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1 Lawyer Answer
Terrence H Thorgaard
Terrence H Thorgaard
  • Tax Law Lawyer
  • Freeeport, FL
  • Licensed in Florida

A: You would have to pay capital gain tax on the difference between what you pay her for her undivided half interest, and the amount you receive when you sell the half interest you buy from her. But no, you don't loose the exemption on your half interest in the property which half interest you inherited.

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