Q: FL judge determined I am heir to my dad's estate.Exempt from FL taxes.I live in MN.When I sell his house do I pay tax?

A: The house needs to be valued at its date of death value. If you sell the house for more than that amount you would be subject to taxes. But only if the net sales price is more than the appraised value.

If the Judge put everything in your name then nothing needs to go into an estate account.

A: When the judge transferred your dad’s house and assets directly to your name, they became your personal property rather than part of the estate. Because of this, when you sell the house or car, the funds generally go into your personal bank account, not an estate account. This is different from situations where assets are sold by the estate during probate, which might be why it feels unfamiliar to you.

Regarding taxes, since you live in Minnesota and the house is in Florida, you won’t owe Florida state taxes because there’s no state income tax there. On the federal level, if the house is being sold for less than its market value or its value at the time of your dad’s death, you likely won’t owe capital gains taxes. For tax purposes, the property’s basis is usually "stepped up" to the value at the time of death, so selling below that typically results in no taxable gain.

However, it’s important to ensure you have records of the property’s value at the time of inheritance and the selling price for future reference. Since tax rules can get tricky, it’s a good idea to consult someone who handles tax laws to confirm your situation and ensure everything is handled properly. Keeping clear documentation of the sale and proceeds will also help if questions arise.