Taxes on Sale of House

We will be selling my mother's house as has she died last week. It's value is far less than $675,000. Question is: in NY, will I have to pay any tax on the money realized after we split the money from the sale? Again, New York state and the value of the house is around $150,000.

(02-01-2001)

Yes, the profit from the sale will be taxable. That profit is called a "capital gain" and should be reported on the Form 1040, Schedule D and/or also on the Estate Tax Form. There may also be state taxes required--you will have to look at the form yourself to find out.

In your special situation when the home is a gift/or inheritance, you need to look at the IRS Publication #551, BASIS OF ASSETS, to determine what value to assign to your home whenever your mother received it.

You can get information on how to order Publication 551 by visiting the IRS website at http://www.irs.gov or look on the back of any tax publication.

SINCERELY,

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