Posted by JHyre in Ohio on January 23, 2002 at 20:11:00:
Yes. The property should be capable of being sold via “1031 Like-Kind Exchange”…though that shouldn’t be necessary. When someone dies and leaves property, the basis of the property is increased to equal its fair market value…thus any sale shortly after being inherited should produce no taxable gain. In short, if you inherited recently, you be able to sell without paying federal income tax.
John Hyre
income tax on sale of inherited property - Posted by linus Bosley
Posted by linus Bosley on January 23, 2002 at 17:35:11:
We sold the homeplace and lot off of a family farm that was jointly inherited by my wife and her sister. Total value of the estate is, perhaps, $100,000 and the home is selling for around $60,000. After dodging the questions the realtor finally said that we would get a 1099 and have “to pay taxes”. Can our half of the proceeds be “rolled over” into a real estate purchase and taxes postponed? Any pointers will be apppreciated.