When I die and my home is sold, are there capital gains taxes to pay. The money from sale goes to various relatives and charities?
- Max HooplaLv 73 weeks ago
When you die the basis (that's an accounting term that for you will mean what you paid for the house plus any capital improvements like a pool or deck) is "stepped up" to the value as of date of death. Your heir would show their basis or cost as what it was worth when you died, not what you paid. If it was sold soon after death the sales price minus normal costs of sale might even generate a tax loss.
- CarVolunteerLv 63 weeks ago
The only capital gains would be on an increase in value that occurs after you die, therefore unlikely to be significant, since the estate can deduct selling expenses from the sale price. They are more likely to have a loss.
- 3 weeks ago
There may be, yes.
- Pearl LLv 73 weeks ago
i would ask the irs about all this
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- curtisports2Lv 73 weeks ago
No. The cost basis of the home for determining any gain on a sale becomes its market value at your death.
- Anonymous3 weeks ago
No is the short answer. There may be inheritance taxes depending on the size of your estate and where you live.
- PearlLv 73 weeks ago
i would call the irs and ask them about it
- JayLv 63 weeks ago
You're going to be dead so it won't matter to you AT ALL