Q: mom & stepdad pass and left a property & I was wondering if my stepbrother buys me out do I have to pay capital gain tax
they had no will.
A:
When a property is inherited due to the passing of relatives and you are considering selling your share to a stepbrother, understanding the tax implications is important. If they passed away without a will, typically, the property's ownership would be determined by the state's intestacy laws, which might have already influenced your ownership stake.
Regarding capital gains tax, it generally applies to the profit made from selling a property for more than its purchase price. However, for inherited property, the basis for determining gain or loss is usually the property's fair market value at the time of the original owner's death. If you sell your inherited share for more than this value, you may owe capital gains tax on the difference. Conversely, if you sell it for less, you might have a loss, which could impact your tax situation differently.
It's beneficial to consult with a tax advisor or attorney who understands estate and tax law to navigate your specific circumstances. They can provide guidance tailored to your situation, including how to calculate any potential capital gains tax and strategies to minimize your tax liability. This professional advice can be invaluable, ensuring you make informed decisions during this complex process.
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