Alamo, CA asked in Tax Law and Real Estate Law for California

Q: capital gains tax

My dad is 83 owns a house outright here in california. My mother passed 2 years ago. The house is in trust to me (only son) if he were to pass. If he does pass, and the house is inherited by me, and I sell it after that, do I get hit with capital gains tax?

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2 Lawyer Answers
David S. Greenberg
David S. Greenberg
PREMIUM
Answered
  • Tax Law Lawyer
  • San Diego, CA
  • Licensed in California

A: When your dad passes, the basis is stepped up to then current market value. If there is no increase in value by the time you sell it, there will be no capital gains tax exposure.

Zaher Fallahi agrees with this answer

Zaher Fallahi
Zaher Fallahi
Answered
  • Tax Law Lawyer
  • Los Angeles, CA
  • Licensed in California

A: Generally, any gains between the fair market value of the property at dad’s death and the sales price minus costs would be taxable. I hope this helps. Good luck. Zaher Fallahi, Esq, CPA (CA &D.C.).

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