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nicolemcg
If I Inherited a house (paid $0 for it), and sold it 20yrs later for $15M, what will I pay in taxes?Fed/NY/NYC
The house has been in my family for two generations (I don't know if that makes a difference).

Any guidance would be greatly appreciated, and if I missed any "key info" above, please answer me with what I missed and I'll try to add it in.

Thanks again!
                     
 




Joe SixPack
Rating
Inherited property has as its tax basis the fair market value as of the date of death of the former owner. If it had a fair mkt value of $10M and you added $ 3M improvements over the year and sold it for $ 15M you would have a capital gain of $2M. Your tax would be whatever tax rate applied at that future date times the $ 2M profit.


Judy1
Rating
If you inherited it, your basis isn't the zero you paid for it, it's what it was worth when the person died that you inherited it from. You subtract your basis from the selling price, subtract allowable expenses. and pay tax on the rest. So there's no way from the info you provide to have any idea of what your taxes would be.


professortvz
There are two components here:
1. You have to pay estate taxes on the inheritance at the fair market value at the time of death.
2. You have to pay capital gains taxes at the time of sale for the profit you made on the house. The profit would be 15M-the fair market value at the time of death.


robert w
given todays tax laws u will owe based on orginal value . 1st purchaser.
contact the IRS for real answer.


Blunt,to the point &comic satire
Laws change. I can't see 20 years into the future. They will have either closed all the loopholes or have a bunch of new ones. Ask the same question 19 years from now


Carol (Yeah I said it!) G.
If u did not pay inheritance taxes because you lived in the house...you're gonna pay lots for the mistake of selling!!!!!
Renting it out would be a better option!


THE CROP KICK CHICK
Rating
yes


Sarah
Rich *****. haha. With something that pricey you should really see a financial advisor. Not someone on yahoo.


d s
Rating
I know now in our time that you can sell a one house every 2 years (with profit, and without reinvesting ) and not have to pay income tax on the money but with tax laws with inheritence i am not sure about that i know you have to pay tax on inherited property and money


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