Post sale of home taxes

[ssshir]

What is the name of your state (only U.S. law)? Michigan
My mother n-law passed away and left her home to the children (adults), sold home with a realter over the summer and money was distributed by probate court in October. My question is: Was all the necessary taxes taken out at that time or do we have to pay taxes with our 08 income taxes? I thought that along with the real estate agents commission that the taxes were also deducted out at that time.

[HomeGuru]

Originally Posted by ssshir

What is the name of your state (only U.S. law)? Michigan
My mother n-law passed away and left her home to the children (adults), sold home with a realter over the summer and money was distributed by probate court in October. My question is: Was all the necessary taxes taken out at that time or do we have to pay taxes with our 08 income taxes? I thought that along with the real estate agents commission that the taxes were also deducted out at that time.

**A: what taxes are you talking about? Real property taxes should have been settled at closing on the sale of the property. Estate taxes are another issue.

[nextwife]

Presuming it was done properly, the buyer would have received a credit on the closing statement for the prorated property taxes from the beginning of the year (or taxing period, if different) to the date of closing. The buyers then pay trhe entire tax bill when it arrives at the end of the year, and the sellers would not pay anything further, as they already "paid" at closing.

[HomeGuru]

Thanks Nexie.

[nextwife]

No problem.

[HomeGuru]

Let's hope the OP responds.