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?
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
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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