Buying or Selling a Home/Tax on sale of house

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Question
Hello Hans,
My brother and I inherited my Dad's house om Long Island in 1996. It was appraised at $225,000 at that time. We recently sold the house for $400,000, but the fair market value was 499,000.
Will I need to pay a tax on this?  Thank you!

Answer
Hello Kathy,
Thank you for your question.

The tax basis value of your dad's house would be as of the date of his passing. Then the difference between that amount and the selling price less any expenses related to selling the house would be the potential taxable amount.

Your real estate closing lawyer will review all the selling expenses prior to closing.

Hope this helps.
Hans  

Buying or Selling a Home

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Hans Weber, Licensed Broker Associate

Expertise

I am able to answer questions related to buying or selling residential real estate in New York. There are many questions buyers and sellers have about the process of buying or selling a home that they are afraid to ask or that might seem too simple to ask. For instance: in a house, why do some doors open in and some doors open out?

Experience

Licensed real estate agent in New York State in 1988.
Serving buyers and sellers as a full time occupation since 1988 with over 300 successful residential real estate transactions.

Organizations
National Association of Realtors.
Westchester County Board of Realtors.

Education/Credentials
Graduate of Pace University in 1988 majoring in business and minors in taxation and computer science.

Awards and Honors
Consistently one of top sales awarding winning agents for Coldwell Banker in Westchester County.

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